Even though implications of capital adequacy rules on financial
stability have been the subject of many academic papers, no
satisfactory conclusions have been made. Even the effects of
risk-based adequacy rules like those known as "Basel I"
are subject to a controversial discussion.
The methods of banking supervision adapt to the changes in the economic environment. The New Basel Capital Accord, Basel II, represents an important addition to the banking supervision framework. With regard to its self-defined aim to increase the stability of the international financial system, this new capital requirement concept is expected to have significant implications for financial institutions.
The aim of this dissertation is to develop a conceptual framework for analyzing changes in financial stability due to changes in capital adequacy requirements. The framework's objectives are to improve our understanding of how and why capital requirements influence the risk-taking strategies of banks. Further, the framework should make accurate predictions about how the risk management and diversification practices of banks (in the EU accession countries) are likely to evolve in the future, after the implementation of the New Basle Capital Requirements.
|start of project||2005|
|end of project||2006|
Aufenthaltsort: Harvard University
Referenten: Prof. Dr. Beat Bernet (s/bf-HSG), Prof. Dr. Alex Keel (M&S-HSG)