Bank Flows and Basel III—Determinants and Regional Differences in Emerging Markets

Bank Flows and Basel III—Determinants and Regional Differences in Emerging Markets

The global financial crisis has led to a range of reform proposals concerning the regulatory framework governing the banking sector collectively referred to as 'Basel III.' Although the proposed reforms are expected to generate substantia...

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Bibliographic Details
Main Authors:	Ghosh, Swati, Sugawara, Naotaka, Zalduendo, Juan
Format:	Brief
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ADVANCED ECONOMIES ASSET PRICES ASYMMETRIC INFORMATION BALANCE SHEET BANK FOR INTERNATIONAL SETTLEMENTS BANK LENDING BANK SUPERVISORS BANKING CRISES BANKING INSTITUTIONS BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BANKS BASIS POINTS BOND BOND MARKETS BORROWING BORROWING COUNTRIES CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKETS CAPITAL RATIO CAPITAL RATIOS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAPITAL STANDARDS CAPITAL STRUCTURE CAPITALIZATION COLLATERAL COMMON SHARES CORPORATE GOVERNANCE COST OF CAPITAL COST OF EQUITY CREDIT AVAILABILITY CREDIT EXPOSURES CREDIT GROWTH DECLINE IN INVESTMENT DERIVATIVES DIVIDEND DIVIDEND PAYMENTS DOMESTIC BANK ECONOMIC ACTIVITY ECONOMIC STRESS EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EMERGING-MARKET EQUITY CAPITAL EXPORTS EXPOSURES FEE] INCOME FINANCIAL CONTAGION FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL FLOWS FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SECTORS FINANCIAL STABILITY GDP GLOBAL BANKING GLOBAL ECONOMY GLOBAL RISKS HOLDING INTEREST RATE INTEREST RATE DIFFERENTIALS INTEREST RATES INTERNATIONAL FINANCE ISSUANCES LENDING DECISIONS LENDING SPREAD LENDING SPREADS LIQUIDITY LIQUIDITY RISK LOAN LOAN PORTFOLIOS MARKET PARTICIPANTS MINIMUM CAPITAL REQUIREMENTS MONETARY AUTHORITIES MONETARY POLICY NONBANKS OPERATING EFFICIENCY OUTPUT POLICY RESPONSE REGULATORY CAPITAL REGULATORY FRAMEWORK RETAINED EARNINGS RISK MANAGEMENT RISKY ASSETS SECURITIZATION SHORT-TERM LIQUIDITY STRUCTURAL CHANGE TIER 1 CAPITAL TIER 2 CAPITAL TRADE FLOWS TRADING TRADING ACTIVITIES TRANSPARENCY VALUATION
Online Access:	http://documents.worldbank.org/curated/en/2011/04/14117854/bank-flows-basel-iii-determinants-regional-differences-emerging-markets http://hdl.handle.net/10986/10099

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Summary:	The global financial crisis has led to a range of reform proposals concerning the regulatory framework governing the banking sector collectively referred to as 'Basel III.' Although the proposed reforms are expected to generate substantial benefits by reducing the frequency and intensity of banking crises, concerns have been raised that, in the short term, the costs of moving to higher capital ratios may lead banks to raise their lending rates and reduce lending. This note explores the near-term implications of Basel III capital regulations on bank flows to emerging markets, based on an analysis of the key determinants of these flows.