The Basel Committee on Banking Supervision: A History of the Early Years 1974-1997

Contents......Page 6
List of Figures......Page 8
List of Tables......Page 9
Foreword......Page 10
Preface......Page 12
1 Introduction......Page 16
A Introduction......Page 25
B The Groupe de Contact......Page 27
C The Eurodollar market, Herstatt and international financial stability......Page 40
D First steps......Page 59
A Introduction......Page 66
George Blunden......Page 67
Peter Cooke......Page 69
Huib Muller......Page 71
Gerald Corrigan......Page 72
Tommaso Padoa-Schioppa......Page 73
Tom de Swaan......Page 74
C The Secretariat......Page 75
D Members and participation......Page 80
E The structure of BCBS meetings......Page 88
A Home/host relationships, 1975......Page 111
B Consolidation of banks’ balance sheets......Page 115
Banco Ambrosiano, 1982......Page 119
BCCI, 1991......Page 122
How could this be done?......Page 125
E Conclusion......Page 128
A An early warning system?......Page 142
B Supervision of the foreign exchange market, foreign currency brokers, the forward market, and so on......Page 145
C Country risk exposure and maturity transformations in wholesale international markets......Page 147
D Conclusion......Page 156
A Early work......Page 161
B The attempt by the BCBS to achieve consensus......Page 166
C The US/UK démarche and the negotiations of the 1988 Accord......Page 182
D Implementation......Page 196
Defending and modifying the club approach......Page 201
Handling technical details: the work of the Capital Liaison Group......Page 204
Exploring other regulatory avenues......Page 205
Assessing the effects of the introduction of the Accord on wider macro-economic developments, or was Basel I responsible for the credit crunch of 1991/92?......Page 206
E Assessment......Page 209
A Early work: the Beverly subgroup......Page 239
B General and specific risk classifications for asset classes: the work of the Carosio subgroup, 1989–1993 – difficult relation with IOSCO......Page 249
C The use of internal models for regulatory purposes: the Market Risk Amendment of 1996......Page 262
D Net interest income risk......Page 276
E Assessment......Page 279
A The first set of BCBS Principles, on money laundering......Page 301
B BCCI and minimum standards......Page 304
C Strengthening Effective Banking Supervision......Page 306
9 Liquidity......Page 332
A Work on off-balance-sheet exposures......Page 366
B Netting......Page 373
C Derivatives......Page 376
A Criteria for selection......Page 387
B Bank secrecy as an impediment to supervision......Page 388
Deposit insurance......Page 393
Crisis management and lender of last resort techniques......Page 394
D Bank profitability......Page 396
E Prevention of criminal use of the banking system......Page 400
F Large credit exposures......Page 404
G Bank insolvency regimes......Page 407
A Relationship with banks......Page 428
Supervisors/regulators in offshore centres......Page 432
Other non-G10 banking supervisors, and the International Conferences of Banking Supervisors (ICBS)......Page 443
Relationships with European banking supervisory groups......Page 450
Relationships with the IMF......Page 453
A Relationships with other BIS standing committees......Page 480
B Relationships with the accountancy profession......Page 483
C Relationships with securities regulators, notably IOSCO......Page 493
D Relationships with insurance regulators, notably IAIS (The International Association of Insurance Supervisors)......Page 525
A The status of the BCBS......Page 557
B International agreements in a world of sovereign states......Page 561
C Implementation......Page 567
A The salient events......Page 575
B Power and knowledge......Page 582
A The BCBS and professional advice......Page 587
B Insufficient appreciation of (financial) economics......Page 590
17 Epilogue......Page 596
Bibliography......Page 598
Index......Page 604