I am grateful to George Benston for extensive comments on an earlier draft.
Implementing Basel II: Is the Game Worth the Candle?
Article first published online: 19 DEC 2005
Financial Markets, Institutions & Instruments
Volume 14, Issue 5, pages 267–287, December 2005
How to Cite
Herring, R. (2005), Implementing Basel II: Is the Game Worth the Candle?. Financial Markets, Institutions & Instruments, 14: 267–287. doi: 10.1111/j.0963-8008.2005.00108.x
- Issue published online: 19 DEC 2005
- Article first published online: 19 DEC 2005
In this article the author provides an extensive analysis of the various aspects of the Basel II Accord. Notwithstanding the gains from adoption of Basel II, he argues that these gains are unlikely to outweigh the costs of implementation and compliance: Basel II will be very costly for banks, home and host country supervisors, and, to the extent that it exacerbates macroeconomic cycles, to the broader economy as well.