Visiting Lecturer Program (20)

Speaker: Dr. Yousef Padganeh
PhD, Business Management, Banking, Preston University, USA, Ajman Campus, UAE

Local Organizer: Keyvan Vakili

Title: Basel II and Banking Industry

Time: Saturday, 20 Oct, 2007, 17:00 till 19:00
Location: School of Management and Economics, Sharif University of Technology, Tehran

Abstract:

Due to economic crises in the 1970 and 1980s, the Basel Committee was established by the central bank Governors of the G-10 countries to supervise internationally active banks.  In 1988 the committee introduced a capita measurement system commonly referred to as the Basel Capital Accord.  The committee supplemented the 1988 Accord’s original focus on credit risk with requirements for exposures to market risk.  This supplemented version of the Accord named by Basel I Accord.

More recently (June, 2004), the issue of financial stability in the weak of economic integration and globalization, as highlighted by the 1997 Asian crises, played an important role to further develop and refine the Basel Accord. 

The new Capital Accord consists of three Pillars:

A. Pillar 1:  Minimum Capital requirements

B. Pillar 2:  Supervisory Review

C. Pillar 3:  Market Discipline

The fundamental objective of the committee’s work to revise the 1988’s Accord has been to develop a framework that would strengthen the soundness and stability of the international banking system while maintaining sufficient consistency that capital adequacy regulation will not be a significant source of competitive inequality among international bank.

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