Scope And Applicability Of Basel Accord (I, II, III) In Domestic Jurisdiction With Special Reference To India
- IJLLR Journal
- Mar 5
- 1 min read
Ankita Rani Sahu, National University of Study & Research in Law, Ranchi
ABSTRACT
The Basel Accords, with all the world influence over bank standards they carry, have long been chastised for technical thickness, or obfuscating real- world perceptions from laypersons. This research fills that gap by analyzing the development, enforcement, criticisms, and real-world effects of Basel I and II. Four main conclusions are a product of the research: (1) The imprecise standards and limited supervisory ambit of Basel I enabled banks to inadvertently manipulate capital adequacy rules, which, in turn, facilitated riskier financial business and weak liquidity defences. (2) Basel II had its own disadvantages, i.e., excessive complexity that rendered worldwide implementation uneven though aimed at rectifying these shortcomings by embracing market discipline, operational risk measurement, and more stringent supervisory procedures. (3) Both accords disproportionately overlook the unique vulnerabilities of developing countries in light of the wide disparities in their risk profiles and regulatory systems compared to their rich counterparts. (4) The de facto nature of the agreements as international standards compels emerging-market institutions to adapt to them, sometimes at the cost of regional economic stability, even though implicit caveats warn against their explicit implementation in developing economies. Through the examination of these paradoxes, the paper highlights the unintended consequences of harmonizing banking regulations in heterogeneous financial environments.
Keywords: Basel Framework, Basel I Capital Accord, Basel II Regulatory Standards, Global Capital Standards Harmonization, Cross-Border Financial Oversight, Developing Economies' Banking Oversight, Financial Regulatory Policies, Emerging Markets' Regulatory Challenges, Risk-Based Capital Requirements, Capital Adequacy Evaluations.
