n South African Journal of Economic and Management Sciences - Basel III countercyclical capital rules : implications for South Africa
|Article Title||Basel III countercyclical capital rules : implications for South Africa|
|© Publisher:||University of Pretoria|
|Journal||South African Journal of Economic and Management Sciences|
|Affiliations||1 North-West University|
|Publication Date||Sep 2012|
|Pages||309 - 324|
|Keyword(s)||Basel III, Buffer capital, C134, C16, C53, Countercyclical and Procyclical|
ISI Social Science
The financial crisis has been blamed on many entities, institutions and individuals as well as the Basel II accord which had just begun to be implemented globally when the crisis erupted. The criticisms resulted in the construction of Basel III, a series of measures designed to augment and repair (but not replace) the Basel II accord. One of these adjuncts addresses the problem of economic procyclicality and suggests ways to mitigate it through capital charge increases when economies overheat and capital charge reduction in economic contractions. The consequences of this proposed measure's introduction for South African banks is explored.
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