Background Paper: Implementation of the Basel Framework: Considerations relating to LICs and LMICs
Pressing questions currently surround whether and to what extent Low Income Countries (LICs) and Lower Middle Income Countries (LMICs) should implement the Basel global banking standards. These standards are comprised of the Basel Committee on Banking Supervision’s (BCBS) ‘Core Principles for Effective Banking Supervision’ (CPEBS), the Basel I, II, 2.5 and III Accords and various supplementary publications issued from time to time. Resolving these questions is of paramount importance going forward, as the interactions of LICs and LMICs with these standards will generate profound implications for their development and effective functioning and their market participants. Research into this area is imperative not only for the sound development of LICs and LMICs, but also for the objective of establishing a coherent international system of bank supervision.
The aim of this paper is to support research endeavours into LIC and LMIC implementation of the Basel global banking standards, and, more broadly, into the economics and political economy of international financial regulation in these countries.