Journal of
Italian
Banking
Association

year 100
 

Archive » Basel standards, solution or cause of financial instability?

Basel standards, solution or cause of financial instability?

Rainer Masera
January 2012 - n°1
Jel codes: G01, G21, G28, G32

The Basel Agreements, designed to pursue financial stability, have been instead a cause of instability, revealing fundamental analytical and operational weaknesses. The idea to define a constant capital ratio through complex statistical models implies serious dangers. A radical change is therefore necessary, starting with the adoption of circuit breakers to prevent credit crunch and the worsening of recession in Europe

 

Interested in this paper?
Buy the issue