Implementation of Basel Accords in Bangladesh
The Role of Institutions
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Beschreibung
This book analyzes the impact of Basel Accord in Bangladesh. More specifically, it focuses on the credit risk homogenization under standardized approach of Basel Accord where External Credit Rating Agencies (ECAIs) are allowed to rate the exposures, the potential risk of allowing sub-ordinated debt (Sub-debt) as Tier 2 capital, and multiple bank distress cases as a real-world scenarios.
In doing so, the book explores why the ECAIs rating fail to capture the real credit risk of exposure and to what extent sub-debt is reliable as regulatory capital. With that, the book's scope is categorized into three tracts (i) analyzes the ECAIs incentive and sanction issues from institutional economics perspective (ii) discusses the ill-impact of Naïve adoption of sub-ordinated debt as regulatory capital and its associated risk on financial system, and (iii) providing readers an empirical illustrations of bank distress when an economy tapped into institutional failures in the above-mentioned tracts (i) and (ii).
A K M Kamrul Hasan has received his Ph.D. from Ritsumeikan Asia Pacific University. His research interests include banking regulation, corporate governance, venture capital, and innovation driven enterprise finance. His works have appeared in several peer-reviewed international journals including Financial Internet Quarterly, International Journal of Economics, Management and Accounting, International Journal of SME Development, and BAUET Journal.
Yasushi Suzuki is a Professor of Finance at the College of International Management, Ritsumeikan Asia Pacific University, Japan. His primary research interest focuses on the institutional political economy and financial development.
This book analyzes the impact of Basel Accord in Bangladesh. More specifically, it focuses on the credit risk homogenization under standardized approach of Basel Accord where External Credit Rating Agencies (ECAIs) are allowed to rate the exposures, the potential risk of allowing sub-ordinated debt (Sub-debt) as Tier 2 capital, and multiple bank distress cases as a real-world scenarios.
In doing so, the book explores why the ECAIs rating fail to capture the real credit risk of exposure and to what extent sub-debt is reliable as regulatory capital. With that, the book's scope is categorized into three tracts (i) analyzes the ECAIs incentive and sanction issues from institutional economics perspective (ii) discusses the ill-impact of Naïve adoption of sub-ordinated debt as regulatory capital and its associated risk on financial system, and (iii) providing readers an empirical illustrations of bank distress when an economy tapped into institutional failures in theabove-mentioned tracts (i) and (ii).
Analyzes the External Credit Rating Agencies incentive and sanction issues from institutional economics perspective Discusses the ill-impact of naïve adoption of sub-ordinated debt as regulatory capital and its associated risk on financial system Argues institutional efficiency would be futile in the absence of incentive and sanction mechanisms in the regulation
Autor*in
A K M Kamrul Hasan
Themen in »Implementation of Basel Accords in Bangladesh«
Credit Risk in Bangladesh ECAI in Bangladesh Regulatory Capital in Bangladesh Sub-ordinated Debt in Bangladesh Banking Malaise in Bangladesh Robust and Effective Capital Regulation Bank Distress in Bangladesh Role of the Central Bank External Credit Ratings Agencies Incentive Liability in Exposure Rating Basel Accord Associated Institutions in Bangladesh Banking Business Model Banking Regulations in Bangladesh