The risks confronted by grain and cotton farmers are of particular interest, given the changing role of the Government after passage of the 1996 Farm Act. With the shift toward less government intervention in the post-1996 Farm Act environment, a more sophisticated understanding of risk and risk...

The financial scandals în the last two decades have determined the Basel Committee to improve the risk controls for banks în general, and for operational risk in particular. Operational risk covers all non-market or credit risk, therefore including management risk, IT and fraud risk. By the...

This paper addresses factors which have prompted the need for further revision of banking regulation, with particular reference to the Capital Requirements Directive. The Capital Requirements Directive (CRD), which comprises the 2006/48/EC Directive on the taking up and pursuit of the business...

The article surveys the literature pertaining to the Basel II and concludes with the concerns germane to India in this regard

The new Basel accord is slated to come into effect in India around 2007 raising the question of how the revised standards will influence bank behaviour. Using a simple theoretical model, it is shown that the revised accord will result in asymmetric differences in the efficacy of monetary policy...

This paper aims to assess the current operational risk disclosure in Hungarian banks. Therefore, we focus on the operational risk items that Hungarian banks disclose and if they comply with the requirements of the International Bank of Settlements. The survey methodology was adopted by testing...

Within the current theoretical literature it has been established that banks tend to maintain the regulatory capital requirements either by raising additional capital through equity issues or by selling/substituting risky assets. This paper bridges the gap for a comparative explanation in...

The paper finds that, given New Zealand’s conservative approach in implementing the Basel II framework, New Zealand banks’ headline capital ratios underestimate their capital strength. A comparison with Canadian, UK and Australian banks highlights the impact of New Zealand’s...

This paper traces the developments that have contributed to the importance of risk in regulation. Not only does it consider theories associated with risk, it also discusses explanations as to why risk has become so important within regulatory and governmental circles. Two forms of risk...

In this chapter I argue that as a response to the introduction of capital requirements in the form of risk weights investors might potentially choose riskier portfolios than before the regulation – this is, presumably, not what the regulation intends to achieve. That is, while regulation most...