Basel principles don’t guarantee stability: IMF paper


Adhering to the Basel principles on banking supervision does not make banks more stable, two economists have said in a paper published by the IMF.

The analysis, based on a commonly used risk measure that uses on accounting information, showed the Basel committee's 25 core principles, especially those pertaining to supervisory powers, had little effect on banks' stability.

Asli Demirgüç-Kunt, the chief economist of the financial and private sector development network at the World Bank who co-w

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