Still more lessons from the crisis
Remarks at the Foreign Policy Association Corporate Dinner, New York City
Basel II will trickle down to community bankers, consumers
The new banking accord could make survival for some regional and community banks more difficult. On the other hand, consumers could see lower mortgage rates.
Can banks circumvent minimum capital requirements? The case of mortgage portfolios under Basel II
The recent mortgage crisis has resulted in several bank failures as the number of mortgage defaults increased. The current Basel I capital framework does not require banks to hold sufficient amounts of capital to support their mortgage lending activities. The new Basel II capital rules are intended to correct this problem. However, Basel II models could become too complex and too costly to implement, often resulting in a trade-off between complexity and model accuracy. In addition, the variation of the model, particularly how mortgage portfolios are segmented, could have a significant impact ...
Potential competitive effects on U.S. bank credit card lending from the proposed bifurcated application of Basel II
This paper analyzes the potential competitive effects of the proposed bifurcated application of Basel II capital regulations in the United States on bank credit card lending activities. For this purpose, the authors consider the Basel II regulations as stated in the June 2004 Basel Committee Framework Agreement. ; Also issued as Payment Cards Center Discussion Paper No. 05-21 ; Superseded by Working Paper 07-09
Competitive effects of Basel II on U.S. bank credit card lending
The authors analyze the potential competitive effects of the proposed Basel II capital regulations on U.S. bank credit card lending. They find that bank issuers operating under Basel II will face higher regulatory capital minimums than Basel I banks, with differences due to the way the two regulations treat reserves and gain-on-sale of securitized assets. During periods of normal economic conditions, this is not likely to have a competitive effect; however, during periods of substantial stress in credit card portfolios, Basel II banks could face a significant competitive disadvantage relative ...
Basel II: a contracting perspective
Basel II implementation in the United States
Basel II: its promise and its challenges
a speech at the Federal Reserve Bank of Chicago?s 42nd Annual Conference on Bank Structure and Competition, Chicago, Illinois