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Periodical article | Leiden University catalogue | WorldCat |
Title: | Capital controls and the lending behaviour of South African banks: preliminary findings on the expected impact of Basel II |
Authors: | Cumming, Seth Nel, Hugo |
Year: | 2005 |
Periodical: | South African Journal of Economics |
Volume: | 73 |
Issue: | 4 |
Pages: | 641-656 |
Language: | English |
Geographic term: | South Africa |
Subjects: | banking credit international agreements |
External link: | https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.2005.00044.x/pdf |
Abstract: | Banking regulation has developed rapidly over the past few years. There is a growing realization that the regulatory environment must keep pace with globalization and with advances in the financial sector. The 1988 Basel Capital Accord was an attempt to align regulatory capital with the actual underlying risks that banks face, thereby improving the soundness of the banking sector. The New Basel Capital Accord, due for implementation in South Africa in 2007, refines this principle and remedies some of the flaws of the 1988 Accord. This paper considers whether such implementation would have an effect on lending patterns and credit expansion in South Africa. It examines the rationale for the 1988 Basel Accord and outlines the relevant features of the New Accord; reviews some of the criticisms directed towards the New Accord, concentrating on the speculation that its implementation will adversely affect bank credit expansion; proposes a method of research for assessing the effect of the New Accord in South Africa; analyses the trends in South African banking and considers how the New Accord may affect bank behaviour. Bibliogr., sum. [Journal abstract] |