The Pro-Cyclical Effect of the New Basel Accord.
This paper offers an early assessment of some of the most significant potential impacts of the proposed New Basle Capital Accord. Section 1 will give a brief overview of the structure of the Accord; section 2 will examine the proposals under the standardised approach and assess the implications for developing countries; section 3 will look in some detail at the proposals to use external credit ratings; section 4 will examine the details and implications of the proposed use of banks' internal risk management systems and section 5 will conclude with an assessment of the potential overall impact of the proposals from the perspective of developing countries, and with some alternative proposals, from a developing country perspective.
Griffith-Jones, S.; Spratt, S. The Pro-Cyclical Effect of the New Basel Accord. (2003) 23 pp.