Prudential Norms for the Financial Sector: Is Development a Missing Dimension? The Cases of Brazil and India

Gottschalk, Ricardo; Sen, Sunanda

doi:10.1057/9780230276093_2

Cited by 4 publications

(4 citation statements)

References 3 publications

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“…The negative impacts of the Basel regulation on developing countries and their economies are studied by Gottschalk and Sen (2010). Using data from Brazil and India, they report that the adoption of Basel I in Brazil and India in the mid-1990s contributed to a banking concentration and a decrease in the total banks' credit to GDP up until the early 2000s, while particularly in India it was creating a credit expansion slowdown.…”

Section: The Impact Of Basel II Regulation On the Banking Industrymentioning

confidence: 99%

The implication of banking regulation on bank business model: evidence from the ASEAN countries

Sudrajad

2021

JFRC

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Purpose The purpose of this paper is to examine to what extent is the impact of Basel II adoption on bank business models in the emerging market of selected ASEAN member states. Design/methodology/approach To evaluate the impact of the Basel II regulation on banking business models, a difference-in-differences estimation approach is used. This study defines bank business models using diversification index of a modified Herfindahl–Hirschman Index. Findings The findings suggest that the Basel II framework only affects banks’ income diversification, while there is no evidence that it leads to funding and asset diversification. Under the Basel II accord, banks have adjusted their business models by diversifying their sources of income to avoid the obligation for keeping more capital; in contrast, a less developed financial market structure and a dependency on customer deposits are creating difficulties for banks in diversifying their funding and asset structure. Research limitations/implications The banking sample are taken only from ASEAN countries. Practical implications The findings provide important implication on the regulatory perspective, which is the implementation of Basel II framework induces higher intensity for the use of non-interest income activities. Including in these activities are trading and derivatives. Accordingly, the financial authorities should take with care the use of trading and derivatives products in the banking industry which is already embedded in current Basel framework, the Basel III Accord. Originality/value The paper provides direct evidence on the impact of Basel II on bank business models in the emerging markets of ASEAN banking sectors.

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Section: The Impact Of Basel II Regulation On the Banking Industrymentioning

confidence: 99%

The implication of banking regulation on bank business model: evidence from the ASEAN countries

Sudrajad

2021

JFRC

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“…This would significantly undermine the ability of development banks to provide counter-cyclical funding. Fletcher and Kupiec (2004) suggest that only the commercial activities of development banks should be subject to the Basel requirements, while others propose that they should be exempted altogether (Gottschalk & Sen, 2006).…”

Section: State As Supervisormentioning

confidence: 99%

A macro-framework for successful development banks

Thorne

Toit

2009

Development Southern Africa

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The large-scale failures of development banks in the 1970s and 1980s meant that they all but disappeared from the development agenda. However, there are still a large number of development banks worldwide that operate with various degrees of success. Some governments are also looking to re-establish such banks to address the shortage of finance for higher-risk market segments. To avoid a repeat of the earlier failures, government policy needs to be informed by an objective framework for the success of these banks. This article, based on economic theory and informed by case studies, outlines such a framework. It addresses the following six dimensions of these banks: enabling environment, mandate, regulation and supervision, governance and management, financial sustainability and performance assessment. Development banking remains a risky initiative but, managed appropriately, and using this framework, it can help achieve development objectives.

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“…De modo geral, este procedimento demanda o estudo de especificidades das diversas localidades, quanto ao grau de desenvolvimento de seus mercados financeiros, estruturas internas de regulação e de supervisão, entre outros fatores. Entre os diversos autores que tem realizado a discussão por meio desta abordagem, podem ser citados Powell (2004), Barrel e Gottschalk (2005), Cornford (2006b), Gottschalk e Sen (2006).…”

Section: Basiléia 2 E Países Em Desenvolvimentounclassified

“…Entre os diversos aspectos que podem ser percebidos por este procedimento podem ser citados os efeitos específicos sobre a concorrência do setor bancário, sobre a alocação de crédito entre diferentes agentes e o papel desempenhado pelos bancos públicos. Esta discussão tem sido abordada por vários autores, entre os quais podem ser citados Powell (2004), Barrel e Gottschalk (2005), Cornford (2006b), Gottschalk e Sen (2006), entre outros.…”

Section: Introductionunclassified

Acordo de Basileia 2 e estabilidade financeira em paises em desenvolvimento

Freitas¹

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Prudential Norms for the Financial Sector: Is Development a Missing Dimension? The Cases of Brazil and India

Cited by 4 publications

References 3 publications

The implication of banking regulation on bank business model: evidence from the ASEAN countries

The implication of banking regulation on bank business model: evidence from the ASEAN countries

A macro-framework for successful development banks

Acordo de Basileia 2 e estabilidade financeira em paises em desenvolvimento

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