Adjustments to the Basel-II framework for prudential control as suggested by the current financial crisis
Li, Siqiwen, and Juniper, James (2008) Adjustments to the Basel-II framework for prudential control as suggested by the current financial crisis. In: Labour Underutilisation, Skills Shortages and Social Inclusion: incorporating the 10th Path to Full Employment Conference and 15th National Conference on Unemployment: proceedings - refereed papers, pp. 93-101. From: 10th Path to Full Employment Conference and the 15th National Unemployment Conference, 4-5 December 2008, Newcastle, NSW, Australia.
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[Extract] Government initiatives to promote full employment are necessitated by downturns in private sector activity that are either triggered off or compounded by financial crises. As a new regulatory system designed for maintaining financial stability, Basel II has received endorsement from the financial industry for its characteristics of risk sensitivity and flexibility. However, other features may serve as a better explanation for this approval. These regulatory features of Basel II help to overcome the dichotomy between direct government command on one hand and self-regulation on the other. This paper will draw on two theoretical notions to evaluate Basel II; one of these is "reflexivity" (Aalders and Wilthagen, 1997), while the other is regulatory "responsiveness" (Braithwaite and Ayres, 1992). In evaluating the effectiveness of Basel II, the paper will examine changes that have occurred in the financial system including the use of CDOs, in the context of the subprime crisis.
|Item Type:||Conference Item (Refereed Research Paper - E1)|
|Keywords:||financial crises; Basel II; self-regulation; financial system; subprime mortgage crisis|
|Date Deposited:||09 Nov 2011 03:00|
|FoR Codes:||14 ECONOMICS > 1402 Applied Economics > 140207 Financial Economics @ 60%
15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150203 Financial Institutions (incl Banking) @ 20%
14 ECONOMICS > 1401 Economic Theory > 140102 Macroeconomic Theory @ 20%
|SEO Codes:||90 COMMERCIAL SERVICES AND TOURISM > 9001 Financial Services > 900101 Finance Services @ 60%
91 ECONOMIC FRAMEWORK > 9101 Macroeconomics > 910105 Fiscal Policy @ 20%
91 ECONOMIC FRAMEWORK > 9101 Macroeconomics > 910109 Savings and Investments @ 20%
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