IDEAS home Printed from https://ideas.repec.org/a/wly/finmar/v14y2005i5p349-357.html
   My bibliography  Save this article

Basel II vs. Prompt Corrective Action: Which Is Best for Public Policy?

Author

Listed:
  • George Kaufman

Abstract

This paper evaluates Basel II as a tool for achieving public policy objectives relative to structured early intervention and resolution (SEIR) and prompt corrective action (PCA) in the U.S. It concludes that Basel II compares poorly in terms of maintaining a safe and sound banking system. Rather, Basel II resembles a “best practices” guide for banks in managing their credit risk. However, it may do damage through encouraging some large banks in the U.S. to successfully pressure their regulators to lower the capital trigger ratio for “adequately‐capitalized” status in order to benefit from any lower regulatory capital requirement that Basel II may give them.

Suggested Citation

  • George Kaufman, 2005. "Basel II vs. Prompt Corrective Action: Which Is Best for Public Policy?," Financial Markets, Institutions & Instruments, John Wiley & Sons, vol. 14(5), pages 349-357, December.
    • Handle: RePEc:wly:finmar:v:14:y:2005:i:5:p:349-357
    DOI: 10.1111/j.0963-8008.2005.00111.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.0963-8008.2005.00111.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.0963-8008.2005.00111.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:finmar:v:14:y:2005:i:5:p:349-357. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.