Basel II's New Standardized Approach: Possible Effects of Implementation
Basel II’s New Standardized Approach: Possible Effects of Implementation Katherine Wyatt New York State Banking Department Abstract The New York State Banking Department surveyed 33 institutions in 2001 and 2002 for a study of the possible effects of the Standardized Approach of the proposed New Capital Accord. Previously, the BIS Quantitative Impact Studies have focused on internationally active banks; this study provides information on the possible impact of the New Accord on domestic banks with asset size between $1 billion and $40 billion. These institutions are often grouped with community banks. The Department found that implementation of the most recent version of the Standardized Approach could lead to an average decrease of 7% in required capital for credit risk, but adding the proposed operational risk charge could bring the total capital charge on average to an increase of 12%. In addition, the estimated impact of the New Standardized Approach varies widely across institutions in the study: the change in minimum capital required for credit risk ranges from a decrease of 23% to an increase of 6%. The Basic Indicator charge for operational risk ranges from 5% of minimum regulatory capital for one savings bank to 83% of minimum required capital for a specialty bank. In this paper, we present a breakdown of the effects of the various elements of the proposed Standardized Approach, and consider a modified approach. We also analyze Call Report data for the survey banks to determine their “complexity profile” and review possible changes to their capital ratios.
Basel II, External Ratings and Adverse Selection
This paper will describe and analyse the development of Basel II Capital Accord and will focus on the use of external ratings in the Standardized Approach in Basel II. Furthermore it will examine the problem of adverse selection which appears in Basel II as a result from the proposal for the use of external ratings in determining the risk weights in the standardized approach. The paper will also attempt to find possible solutions to the adverse selection problem by discussing two similar models, and derive implications from them.
Judicial Review, Socio-Economic Rights and the Human Rights Act
INTRODUCTION 1 THE ROLE OF COURTS IN THE PROTECTION OF SOCIO-ECONOMIC RIGHTS: INTERNATIONAL AND DOMESTIC PERSPECTIVES I. The Indivisibility of Human Rights II. The Protection of Socio-economic Rights in Domestic Courts III. Conclusion 2 THE REGIONAL PROTECTION OF SOCIO-ECONOMIC RIGHTS: EUROPE I. Introduction II. The European Convention on Human Rights (ECHR) 1950 III. The Protection of Socio-economic Rights in the ECHR IV. The Protection of Socio-economic Rights in EC/EU Law V. Conclusion 3 COURTS, THE UK CONSTITUTION AND THE HUMAN RIGHTS ACT 1998 I. Introduction II. Reading and Giving Effect to ECHR Rights in UK Courts III. Conclusion 4 JUDICIAL REVIEW: DEFERENCE, RESOURCES AND THE HUMAN RIGHTS ACT I. Introduction II. The Constitutional Foundations of Judicial Review III. Public Law, Deference and the Human Rights Act IV. Conclusion 5 FROM NEED TO 'CHOICE' IN PUBLIC SERVICES: THE BOUNDARIES OF JUDICIAL INTERVENTION IN PRIORITISATION DISPUTES I. Introduction II. NHS Rationing: The Role of Courts in Disputes over Access to Medical Services III. Local Authority Resource Allocation Disputes IV. Interpreting Local Authority Statutory Duties Post-HRA V. Conclusion 6 ARTICLES 3 AND 8 ECHR: FAILURE TO PROVIDE AND POSITIVE OBLIGATIONS IN THE SOCIO-ECONOMIC SPHERE I. Introduction II. Anufrijeva, Article 8 ECHR and Maladministration in the Provision of Welfare III. Article 3 ECHR: Respect for Dignity IV. Conclusion 7 ARTICLE 14 ECHR AND THE UNEQUAL DISTRIBUTION OF PUBLIC GOODS AND SERVICES IN THE UNITED KINGDOM I. Introduction II. Socio-economic Entitlements and the Limits of Substantive Fairness in Article 14 ECHR III. Carson's Case: Refusal of Up-rated Payments to Pensioners Abroad 283 IV. Reynolds' Case: The Intensity of Scrutiny in Other 'Status Disputes' V. Equality and Human Rights VI. Conclusion 8 ARTICLE 6 ECHR: JUDICIAL REVIEW, DUE PROCESS AND THE PROTECTION OF SOCIO-ECONOMIC RIGHTS I. Introduction II. What is a Civil Right for the Purposes of Article 6 ECHR? III. The Quality of Administrative Justice: The Scope of Article IV. Conclusion