Honors Theses
Date of Award
2014
Document Type
Undergraduate Thesis
Department
Croft Institute for International Studies
First Advisor
Joshua Hendrickson
Relational Format
Dissertation/Thesis
Abstract
The New Capital Accord, Basel II, was published in 2004. It features updated capital requirements and new ways to measure bank risk; however, the validity of these new standards was called into question during the financial crisis that began in 2008. The measures that intend to stabilize our banking system did not appear sufficient. Doubt was cast upon capital requirements, and the advantages of another system, such as contingent liability, can be seen. This thesis aims to test the effectiveness of Basel II, specifically its capital requirements, in reducing bank risk. After running a fixed effects model, one can clearly see that Basel II is insignificant in reducing bank risk, as measured by the percentage of non-performing loans to total gross loans.
Recommended Citation
Shaw, Rachel, "The Effectiveness of Basel II" (2014). Honors Theses. 780.
https://egrove.olemiss.edu/hon_thesis/780
Accessibility Status
Searchable text
Comments
A thesis presented in partial fulfillment of the requirements for completion of the Bachelor of Arts degree in International Studies from the Croft Institute for International Studies and the Sally McDonnell Barksdale Honors College.