Statistics & Publication
Was Basel III Necessary and Will it Bring About Prudent Risk Management in Banking?
Tuesday, 30 November 1999 00:00

Banks competition reduces margins and impacts on profit. Banks have the incentive to take on more risks by easing their credit standards. Prudent banking is therefore undermined and capital adequacy requirements are used as instruments to limit banks failures. The purpose of this paper is therefore to assess whether Basel III was necessary and would be able to bring about prudent risk management in banking.

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