Daníelsson, Jón - In: CESifo economic studies : CESifo, a joint initiative of … 49 (2003) 2, pp. 157-179
Risk based regulation has emerged as the primary ingredient in the Basel-II proposals, where a bank capital is to become a direct funtion of a bank's riskiness. While the notion that bank capital be risk sensitive is intuitively appealing, the actual implementation, in the form of Basel-II,...