Implementing BaselII: Impact on emerging economies
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Dissertation on Implementing Basel II: Impact on emerging economies (Finance) Prepared By: Rahul Sapru Uday Krishna Class of 2005, IIM Calcutta rahul_sapru@hotmail.com rahulsa2005@email.iimcal.ac.in Ph: 9830327043 Executive Summary Over the last 25 years there has been a slow realization that what matters for a successful economy, one that delivers rapidly improving living standards for all, is not only the precise levels of interest rates or budget deficits, tax breaks for particular activities - not only the exact calibration of the instruments of policy, but also the institutions of policy. This paper is an attempt to analyze the effects of one such policy introduced by the Basel Committee on Banking Supervision. It will focus on the impact of introducing this policy in emerging economies. Although the proposed new Basel Capital Accord is to be built on 'three mutually reinforcing pillars', it is likely that the changes proposed to the measurement of credit risk (Pillar 1) will have...


