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The Impact Of The New Basel Accord On The Supply Of Capital To Emerging Market Economies

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Listed:
  • Gabriela Corina Slusariuc

    (University of Petroşani, Romania)

  • Maria Măcriş

    (University of Petroşani, Romania)

Abstract

The New Basel Accord aims to ensure that international banks’ regulatory capital reflects more closely the credit quality of their loan portfolios. This means that capital charges will be higher for lending to low credit quality borrowers. Some have argued that this increased risk sensitivity will lead to a curtailment in the supply of capital to emerging market economies (EMEs) .There are several reasons to think that the impact of the new Accord is unlikely to be as dramatic as some commentators have suggested.

Suggested Citation

  • Gabriela Corina Slusariuc & Maria Măcriş, 2009. "The Impact Of The New Basel Accord On The Supply Of Capital To Emerging Market Economies," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 9(4), pages 241-244.
    • Handle: RePEc:pet:annals:v:9:i:4:y:2009:p:241-244
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    References listed on IDEAS

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    1. Ferri, Giovanni & Liu, Li-Gang & Majnoni, Giovanni, 2001. "The role of rating agency assessments in less developed countries: Impact of the proposed Basel guidelines," Journal of Banking & Finance, Elsevier, vol. 25(1), pages 115-148, January.
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