Implementation of Basel Accords in Bangladesh:The Role of Institutions

by: A K M Kamrul Hasan (Author),Yasushi Suzuki(Author)

Publisher: Palgrave Macmillan

Publication Date: 31 July 2022

Language: English

Print Length: 234 pages

ISBN-10: 9811634742

ISBN-13: 9789811634741

Book Description

This book analyzes the impact of Basel Accord in Bangladesh. More specifically, it focuses on the credit risk homogenization under standardized approach of Basel Accord where Exteal Credit Rating Agencies (ECAIs) are allowed to rate the exposures, the potential risk of allowing sub-ordinated debt (Sub-debt) as Tier 2 capital, and multiple bank distress cases as a real-world scenarios. In doing so, the book explores why the ECAIs rating fail to capture the real credit risk of exposure and to what extent sub-debt is reliable as regulatory capital. With that, the book's scope is categorized into three tracts (i) analyzes the ECAIs incentive and sanction issues from institutional economics perspective (ii) discusses the ill-impact of Naïve adoption of sub-ordinated debt as regulatory capital and its associated risk on financial system, and (iii) providing readers an empirical illustrations of bank distress when an economy tapped into institutional failures in theabove-mentioned tracts (i) and (ii).
From the Back Cover This book analyzes the impact of Basel Accord in Bangladesh. More specifically, it focuses on the credit risk homogenization under standardized approach of Basel Accord where Exteal Credit Rating Agencies (ECAIs) are allowed to rate the exposures, the potential risk of allowing sub-ordinated debt (Sub-debt) as Tier 2 capital, and multiple bank distress cases as a real-world scenarios. In doing so, the book explores why the ECAIs rating fail to capture the real credit risk of exposure and to what extent sub-debt is reliable as regulatory capital. With that, the book's scope is categorized into three tracts (i) analyzes the ECAIs incentive and sanction issues from institutional economics perspective (ii) discusses the ill-impact of Naïve adoption of sub-ordinated debt as regulatory capital and its associated risk on financial system, and (iii) providing readers an empirical illustrations of bank distress when an economy tapped into institutional failures in the above-mentioned tracts (i) and (ii). A K M Kamrul Hasan has received his Ph.D. from Ritsumeikan Asia Pacific University. His research interests include banking regulation, corporate goveance, venture capital, and innovation driven enterprise finance. His works have appeared in several peer-reviewed inteational jouals including Financial Inteet Quarterly, Inteational Joual of Economics, Management and Accounting, Inteational Joual of SME Development, and BAUET Joual.Yasushi Suzuki is a Professor of Finance at the College of Inteational Management, Ritsumeikan Asia Pacific University, Japan. His primary research interest focuses on the institutional political economy and financial development.
About the Author
A K M Kamrul Hasan has received his Ph.D. from Ritsumeikan Asia Pacific University. His research interests include banking regulation, corporate goveance, venture capital, and innovation driven enterprise finance. His works have appeared in several peer-reviewed inteational jouals including Financial Inteet Quarterly, Inteational Joual of Economics, Management and Accounting, Inteational Joual of SME Development, and BAUET Joual.Yasushi Suzuki is a Professor of Finance at the College of Inteational Management, Ritsumeikan Asia Pacific University, Japan. His primary research interest focuses on the institutional political economy and financial development.