|
|
|
 |
|
|
About WADMO |
|
Membership |
|
WADMO info |
|
Links |
|
Members area |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Assembly |
|
|
|
|
|
Third General Assembly/Conference
12 November 2003 - Palais des Nations - Geneva
|
Panel on Basel II - Its implications on lending to developing countries
The Basel Committee on banking supervision has proposed a new capital accord with the aim of more accurately aligning regulatory capital with the risks that international banks face. But the agreement could have precisely the opposite effect when it comes to developing and emerging countries.
What are the major elements of Basel II? What are the key issues for developing and emerging countries? How are these countries represented in the Basel Committee and to which extent their concerns have been addressed in the Third Consultative Paper? What impact the accord will have on the cost of international bank lending to developing countries? All these and other issues have been addressed during that panel.
This event has been organized jointly with the United Nations Conference on Trade and Development (UNCTAD), in coordination with UNCTAD's Fourth Inter-regional Debt Management Conference (10-11 November 2003). Visit its site on:
http://r0.unctad.org/dmfas/index.htm
|
Panel's main conclusion
The main conclusion emerging from the panel was that the Basel II proposal, while representing an improvement over the existing Accord, presented several problems from a developing country perspective. These problems include: (a) punitive capital requirements for low-grade lenders, leading to higher financing costs for developing countries and effectively shutting them out of lending markets; (b) the reliance of Basel II on credit rating agencies, which were viewed as unsuitable for judging economic conditions in developing countries, especially during crises; (c) the continued bias towards short-term lending; (d) the need to increase representation of developing countries on the Basel Committee; (e) the lack of recognition in Basel II of a diversified developed/developing country portfolio rather than one exclusively focused on OECD economies; (f) the difficulties in implementing Basel II by the 2007 deadline given limited supervisory resources. The points on punitively high capital requirements, credit rating agencies and short-term lending were seen as especially problematic given their role in recent emerging-market financial crises, the resulting sharp falls in lending to developing countries and the need to dampen boom-and-bust cycles in the global economy.
|
|
Speakers' Papers
|
Eduardo Sergio Gonzales Edeza
President of the Panel
Mr. Edeza is currently Treasurer of the Philippines. He was previously Senior Vice President of the Treasury Group, Metropolitan Bank and Trust Company. Mr. Edeza has also served as Senior Staff Office of the Treasury Department, Central Bank of the Philippines from 1981 to 1985 and its Internal Auditor from 1980 to 1981.
As Senior Vice President of the Metropolitan Bank and Trust Company, Mr. Edeza headed its Funds Management Division and Treasury Information Technology Unit from 1998-2000. In addition to that, he was also the head of the Foreign Currency Division in mid-2000.
Other positions he has held in Central Bank include: Director of the Treasury and Treasurer, Head of Reserves Management, Head of Fixed Income, Currency and Gold and Derivates Trading, Head of Risk Management, Head Treasury IT Unit, and Head of Settlements.
|
|
Stephany Griffith-Jones
How to Prevent the New Basel Capital Accord Harming Developing Countries
Ms. Griffith-Jones is a Professorial Fellow at the Institute of Development Studies at University of Sussex. She has led many international research projects on debt, financial regulation, macro-economic policy and international financial reform. She has published widely including fifteen books.
She has advised numerous governments and international organisations. Recently, she has undertaken a great deal of research on Basle and the New Basel Capital Accord, including presenting at the IMF-World Bank Annual Meetings in Dubai in September 2003 and other events.
|
Download paper  (166 Ko)
|
Helmut Reisen
- Will Basel II Contribute to Convergence in International Capital Flows?
- For reference: Will Basel II affect international capital flows to emerging markets?
Technical Paper No 199 of the OECD Development Centre, available on:
http://www.oecd.org/dataoecd/18/42/1837890.pdf
Mr. Reisen is Counsellor at the OECD Development Centre in France where he has also held the positions of Senior Economist and Head of Division. Among his academic activities, he is Professor of International Economics at Basle University in Switzerland. Professor Reisen has also carried out numerous consultancies for the Governors of Central Banks in Chile and Taiwan, International Monetary Fund, World Bank, Asian Development Bank, Deutsche Bank and UNU/Wider.
Professor Reisen was the recipient of the Bronze Award for the Amex Bank Review Competition in International Economics and Financial Markets in both 1993 and 1994.
His most recent books are Pensions, Savings and Capital Flows: From Ageing to Emerging Markets and Debt, Deficits and Exchange Rates: Essays on Financial Interdependence and Development.
|
Download paper (142 Ko)
|
Andrew Conrford
- Basel II : Vintage 2003
- Comments of developing countries on the April 2003 Consultative Document of the Basel Committee on Banking Supervision
Mr. Cornford is Research Fellow at the Financial Markets Center, a US organization which carries out and disseminates analysis on issues of monetary and financial policy. He also served as Senior Economic Adviser in the the Division on Globalization and Development Strategies at the United Nations Conference on Trade and Development, where he worked from 1977 to 2003, specializing on issues related to financial services and their regulations. During the Uruguay Round negotiations, from 1987 to 1994, he advised governments of developing countries in the field of financial services.
His most recent publications include: Capital Flows to Developing Coutries and the Reform of the International Financial Systems, The Basle Committee's Proposals for Revised Capital Standards: Rationale, Design and Possible Incidence and other discussion papers in the G-24 Discussion Paper Series.
|
Download Paper 1 (189 Ko)
Download Paper 2 (138 Ko)
|
Herman Mulder
Basel II: Its implications for developing countries
Mr. Mulder is Senior Executive Vice President of the Group Risk Management Corporate Center at ABN AMRO Bank N.V., Amsterdam, and is responsible for the Bank's overall credit risk management worldwide. He is also co-chairman of the Bank's Group Risk Management Committee and one of the initiators of the Equator Principles.
Starting in 1979 in ABN AMRO Bank, Mr. Mulder has held different positions, including Head of Global Structured Finance, Head of Global Credit Structuring and Syndication Group and Head of Credit Group Corporate Banking. From 1972 and 1979 he worked as Assistant Treasurer/Controller and Business Development Manager at Pakhoed Holding/Paktank (Rotterdam/Philadelphia).
|
|
Download paper (133 Ko) |
|
|
|
|
|
|
|
|
|
|
