BASLE FRAMEWORK BASLE FRAMEWORK AND THE ISSUES OF AND THE ISSUES OF REGULATION, SUPERVISION AND REGULATION, SUPERVISION AND CORPORATE GOVERNANCE CORPORATE GOVERNANCE IN ISLAMIC BANKING IN ISLAMIC BANKING DR. M. UMER CHAPRA DR. M. UMER CHAPRA RESEARCH ADVISER RESEARCH ADVISER IRTI/IDB, JEDDAH IRTI/IDB, JEDDAH
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BASLE FRAMEWORK AND THE ISSUES OF REGULATION, SUPERVISION AND CORPORATE GOVERNANCE IN ISLAMIC BANKING DR. M. UMER CHAPRA RESEARCH ADVISER IRTI/IDB, JEDDAH.
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BASLE FRAMEWORKBASLE FRAMEWORKAND THE ISSUES OFAND THE ISSUES OF
REGULATION, SUPERVISION AND REGULATION, SUPERVISION AND CORPORATE GOVERNANCECORPORATE GOVERNANCE
IN ISLAMIC BANKINGIN ISLAMIC BANKING
DR. M. UMER CHAPRADR. M. UMER CHAPRARESEARCH ADVISERRESEARCH ADVISER
IRTI/IDB, JEDDAHIRTI/IDB, JEDDAH
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THE NEED FOR INTERNATIONAL FINANCIAL REFORMTHE NEED FOR INTERNATIONAL FINANCIAL REFORM
INTERNATIONAL FINANCIAL CRISESINTERNATIONAL FINANCIAL CRISES
HOW TO PREVENT SUCH CRISES FROM TAKING PLACE IN HOW TO PREVENT SUCH CRISES FROM TAKING PLACE IN
THE FUTURE?THE FUTURE?
CALL FOR A “NEW ARCHITECTURE” FOR THE FINANCIAL CALL FOR A “NEW ARCHITECTURE” FOR THE FINANCIAL
SYSTEMSYSTEM
BASLE COMMITTEE ON BANKING SUPERVISION (BCBS)BASLE COMMITTEE ON BANKING SUPERVISION (BCBS)
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THE 1988 BASLE CAPITAL ACCORDTHE 1988 BASLE CAPITAL ACCORD
BCBS, INTERNATIONAL CONVERGENCE OF CAPITAL BCBS, INTERNATIONAL CONVERGENCE OF CAPITAL
MEASUREMENT AND CAPITAL STANDARDS (1988)MEASUREMENT AND CAPITAL STANDARDS (1988)
A SIMPLE STANDARDIZED APPROACH FOR ESTABLISHING A SIMPLE STANDARDIZED APPROACH FOR ESTABLISHING
MINIMUM CAPITAL REQUIREMENTS – BANKS TO MAINTAIN MINIMUM CAPITAL REQUIREMENTS – BANKS TO MAINTAIN
CAPITAL ON THE BASIS OF FIVE CLASSES OF BORROWERS CAPITAL ON THE BASIS OF FIVE CLASSES OF BORROWERS
(0%, 10%, 20%, 50% AND 100%)(0%, 10%, 20%, 50% AND 100%)
DID NOT DISTINGUISH BETWEEN THE RELATIVE DEGREES OF DID NOT DISTINGUISH BETWEEN THE RELATIVE DEGREES OF
CREDITWORTHINESS AMONG INDIVIDUAL BORROWERS CREDITWORTHINESS AMONG INDIVIDUAL BORROWERS
APPLIED INITIALLY TO INTERNATIONALLY ACTIVE BANKS IN APPLIED INITIALLY TO INTERNATIONALLY ACTIVE BANKS IN
THE G10 COUNTRIESTHE G10 COUNTRIES
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BASLE II - 1996BASLE II - 1996
GREATER FOCUS ON RISK MEASUREMENT AND GREATER FOCUS ON RISK MEASUREMENT AND
CONTROLCONTROL
THE “THREE PILLARS”THE “THREE PILLARS”
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BASLE II (1)BASLE II (1)
““PILLAR 1”: CAPITAL ADEQUACYPILLAR 1”: CAPITAL ADEQUACY
RISK ADJUSTED CAPITAL REQUIREMENTSRISK ADJUSTED CAPITAL REQUIREMENTS