Download or read book How the Proposed Basel Guidelines on Rating agency Assessments Would Affect Developing Countries written by Giovanni Ferri and published by World Bank Publications. This book was released on 2000 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Basel Committee has proposed linking capital asset requirements for banks to the banks' private sector ratings. Doing so would reduce the capital requirements for banks that lend prudently in high-income countries; the same incentives would not apply in developing countries.
Download or read book How the Proposed Basel Guidelines on Rating Agency Assessments Would Affect Developing Countries written by Giovanni Majnoni and published by . This book was released on 2016 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Basel Committee has proposed linking capital asset requirements for banks to the banks' private sector ratings. Doing so would reduce the capital requirements for banks that lend prudently in high-income countries; the same incentives would not apply in developing countries. Using historical data on sovereign and individual borrowers, Ferri, Liu, and Majnoni assess the potential impact on non-high-income countries of linking capital asset requirements for banks to private sector ratings, as the Basel Committee has proposed.They show that linking banks' capital asset requirements to external ratings would have undesirable effects for developing countries. First, ratings of banks and corporations in developing countries are less common, so capital asset requirements would be practically insensitive to improvements in the quality of assets - widening the gap between banks of equal financial strength in higher- and lower-income countries.Second, bank and corporate ratings in developing countries (unlike their counterparts in high-income countries) are strongly linked to the sovereign ratings for the country - and appear to be strongly related (asymmetrically) to changes in the sovereign ratings. A sovereign downgrading would bring greater changes in capital allocations than an upgrading, and would call for larger capital requirements at the very time access to capital markets was more difficult.Under the new guidelines, capital requirements in developing countries would thus be exposed to the cyclical swings associated with the revision of sovereign ratings in recent crises.Ultimately, linking banks' capital asset requirements to private sector ratings would reduce the credit available to non-high-income countries and make it more costly, limiting economic activity. Bank capital needs in developing countries would be more volatile than those in high-income countries.These findings suggest that the Basel Committee should reassess the role it proposes assigning to external ratings, to minimize the detrimental impact of the regulatory use of such ratings on developing countries. This paper - a product of the Financial Sector Strategy and Policy Department - is part of a larger effort in the department to study the impact of financial regulation on economic development. The authors may be contacted at [email protected] or [email protected].
Download or read book International Convergence of Capital Measurement and Capital Standards written by and published by Lulu.com. This book was released on 2004 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Basel II and Developing Countries written by Andrew Powell and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite recently announced delays, Basel II - the new standard for bank capital - is due to be completed this year for implementation in the 13 Basel Committee member countries by the end of 2006. Should the other 170 plus member countries of the World Bank also adopt Basel II? Basel II was not written with developing countries in mind, but that does not necessarily mean that there is nothing in it for developing countries or that it can be ignored. Basels I and II represent a wide Sea of Standards. This paper suggests five alternative island-standards and five navigational tools to help countries choose their preferred island within the sea. It is suggested that for some developing countries the standardized approach will yield little in terms of linking regulatory capital to risk, but that countries may need many years of work to adopt the more advanced internal rating-based approach. The paper then proposes a centralized rating-based approach as a transition measure. The paper also makes proposals regarding a set of largely unresolved cross-border issues.
Download or read book Are Cost Models Useful for Telecoms Regulators in Developing Countries written by and published by World Bank Publications. This book was released on 2000 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: As developing countries build up their capacity to regulate privatized infrastructure monopolies, cost models are likely to prove increasingly important in determining the efficient cost of providing a service to a certain area or type of customer. But cost models require reliable information, which is often scarce in developing countries. Census data and the location of wire services together may help provide the minimum information a regulator needs to implement a cost proxy model, a promising regulatory tool for assessing the efficient cost of providing a utility service.
Download or read book Sustainable Development Report 2021 written by Jeffrey Sachs and published by Cambridge University Press. This book was released on 2021-10-14 with total page 517 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Sustainable Development Report 2021 features the SDG Index and Dashboards, the first and widely used tool to assess country performance on the UN Agenda 2030 and the Sustainable Development Goals. The report analyses and outlines what needs to happen for the Decade of Action and Delivery of the SDGs. In order to build back better following the Covid-19 pandemic, especially low-income countries will need increased fiscal space. The report frames the implementation of the SDGs in terms of six broad transformations. The authors examine country performance on the SDGs for 193 countries using a wide array of indicators, and calculate future trajectories, presenting a number of best practices to achieve the historic Agenda 2030. The views expressed in this report do not reflect the views of any organizations, agency or programme of the United Nations. This title is available as Open Access on Cambridge Core.
Download or read book Rethinking Participation in Global Governance written by Joost Pauwelyn and published by Oxford University Press. This book was released on 2022 with total page 545 pages. Available in PDF, EPUB and Kindle. Book excerpt: This addition to the 'Law and Global Governance Series' examines participation of stakeholders in treaty-based intergovernmental organizations. Readers are offered a comprehensive account of what has been done to facilitate the participation of previously neglected stakeholders.
Download or read book The Effect of Early Childhood Development Programs on Women s Labor Force Participation and Older Children s Schooling in Kenya written by Michael Lokshin and published by World Bank Publications. This book was released on 2000 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic incentives have a powerful effect on the work behavior of women with children in Kenya. In addition to increasing the future productivity of children, government subsidies of low-cost early childhood development programs would increase the number of mothers who work, thus increasing the incomes of poor households and lifting some families out of poverty. They would also increase older girls' enrollment in school, by releasing them from child care responsibilities.
Download or read book Impediments to the Development and Efficiency of Financial Intermediation in Brazil written by Thorsten Beck and published by World Bank Publications. This book was released on 2000 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: To improve on the low level and low efficiency of Brazil's financial intermediation (and hence economic growth), Brazil needs reforms leading to a more efficient judical sector, better enforcement of contracts, stronger rights for creditors, stronger accounting standards and practices, and a legal and regulatory framework that facilitates the exchange of information about borrowers.
Download or read book Reciprocity Across Modes of Supply in the World Trade Organization written by Aaditya Mattoo and published by World Bank Publications. This book was released on 2000 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: If negotiations on trade in services at the World Trade Organization are to advance liberalization beyond levels undertaken unilaterally and lead to more balanced outcomes, reciprocity must play a greater role in negotiations. This may be facilitated by the use of negotiating rules that establish credible links across sectors and modes of delivery.
Download or read book Policy Research Working Paper the Social Rate of Return on Infrastructure Investments written by and published by World Bank Publications. This book was released on with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Regulators and the Poor written by Richard Green and published by World Bank Publications. This book was released on 2000 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: The United Kingdom generally fights poverty directly - through the government's benefit system - and not through utilities. But Bristish regulators have taken certain measures that help utility consumers (mostly, but not always, poor consumers). Other countries may be able to copy some of their techniques.
Download or read book Savings and the Terms of Trade Under Borrowing Constraints written by Pierre-Richard Agénor and published by World Bank Publications. This book was released on 2000 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: When households face the possibility of borrowing constraints in bad times, favorable movements in the permanent component of the terms of trade may lead to higher rates of private savings.
Download or read book The Rise the Fall and the Emerging Recovery of Project Finance in Transport written by Antonio Estache and published by World Bank Publications. This book was released on 2000 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many transport projects undertaken during the boom period of the 1990s came to a crashing halt in 1997, and conditions in emerging markets worsened in 1998 and 1999. Many projects failed, victim of everything from overoptimistic forecasts to excessive debt to an inability to refinance bridge loans. As available financing dried up, many projects went bankrupt, had to be renegotiated, or were taken over by the government. What have we learned from all this?
Download or read book Vietnam written by Patrick Belser and published by World Bank Publications. This book was released on 2000 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Between 1993 and 1997, Vietnam was one of the fastest growing economies, with GDP increasing almost 9 percent a year and the industrial sector expanding roughly 13 percent a year. This paper addresses the impact of that economic growth on employment.
Download or read book A New Model for Market based Regulation of Subnational Borrowing written by Marcelo Giugale and published by World Bank Publications. This book was released on 2000 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: To bring fiscal discipline to state and municipal governments, Mexico's federal government has established a two-pillar framework that explicitly renounces federal bail-outs and establishes a Basel - consistent link between the capital-risk weighting of bank loans to subnational governments and the borrower's credit rating. Whether the framework succeeds will depend partly on market assessments of the government's commitment to enforce bank capital rules and refrain from bailing out defaulting subnational governments.
Download or read book Ratings Rating Agencies and the Global Financial System written by Richard M. Levich and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 380 pages. Available in PDF, EPUB and Kindle. Book excerpt: Ratings, Rating Agencies and the Global Financial System brings together the research of economists at New York University and the University of Maryland, along with those from the private sector, government bodies, and other universities. The first section of the volume focuses on the historical origins of the credit rating business and its present day industrial organization structure. The second section presents several empirical studies crafted largely around individual firm-level or bank-level data. These studies examine (a) the relationship between ratings and the default and recovery experience of corporate borrowers, (b) the comparability of credit ratings made by domestic and foreign rating agencies, and (c) the usefulness of financial market indicators for rating banks, among other topics. In the third section, the record of sovereign credit ratings in predicting financial crises and the reaction of financial markets to changes in credit ratings is examined. The final section of the volume emphasizes policy issues now facing regulators and credit rating agencies.
