Pakravan, Karim - In: Journal of Financial Regulation and Compliance 22 (2014) 3, pp. 208-218
Purpose – The purpose of this paper is to focus on the “Basel Illusion”, the belief that a model-driven quantitative approach to capital adequacy can lead to a more robust and shock-proof system. The author analyzes the Basel framework and its role as a major source of systemic risk....