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Basel II: An Economic Assessment

17–18 May 2002 | Basel, Switzerland

About the workshop

A workshop jointly organised by the Basel Committee on Banking Supervision, the Centre for Economic Policy Research, and the Journal of Financial Intermediation.

 

  • Urs Birchler (Basel Committee and Swiss National Bank)
  • Rafael Repullo (CEMFI and CEPR)
  • Stephen Senior (Basel Committee Secretariat)
  • Ernst-Ludwig von Thadden (Université de Lausanne, CEPR and JFI)
  • Anjan Thakor (University of Michigan and JFI)

Day 1 - 17 May

Andrew Crockett (Bank for International Settlements)

 Chair: Urs Birchler (Basel Committee and Swiss National Bank)
08:50

Regulatory and 'Economic' Solvency Standards for Internationally Active Banks

Patricia Jackson (Bank of England)
William Perraudin (Birkbeck College and CEPR)
Victoria Saporta (Bank of England)

09:30Discussion by Arnoud Boot (University of Amsterdam)
Discussion by Giovanni Majnoni (World Bank)
10:00

The Relationship between Average Asset Correlation, Firm Probability of Default and Asset Size

Jose A Lopez (Federal Reserve Bank of San Francisco)

10:40Discussion by George Pennacchi (University of Illinois)
Discussion by Akira Ieda (Bank of Japan)
11:30

Are Capital Buffers Pro-Cyclical?

Juan Ayuso (Banco de España)
Daniel Pérez (Banco de España
Jesús Saurina (Banco de España)

12:10Discussion by George Sheldon (Universität Basel)
Discussion by Ed Ettin (Federal Reserve Board)

  Chair: Anjan Thakor (University of Michigan and JFI)
14:20

Banks, Internal Models, and the Problem of Adverse Selection 

Christian Ewerhart (Universität Mannheim)

15:00Discussion by Sudipto Bhattacharya (London School of Economics)
Discussion by Bertrand Rime (Swiss National Bank)
15:30

Is the New Basel Accord Incentive Compatible? 

Paul Kupiec (International Monetary Fund)

16:10Discussion by Paola Sapienza (Northwestern University)
Discussion by Klaas Knot (Nederlandsche Bank)
17:00

Capital Requirements, Market Power, and Risk-Taking in Banking

Rafael Repullo (CEMFI and CEPR)

17:40Discussion by Oved Yosha (Tel Aviv University)
Discussion by Jürg Blum (Swiss National Bank)

Day 2 - 18 May

 Chair: Claudio Borio (Bank for International Settlements)
09:00

The Three Pillars of Basel II: Optimizing the Mix in a Continuous-Time Model

Jean Paul Décamps (Université de Toulouse)
Benoît Roger (Université de Toulouse)
Jean-Charles Rochet (Université de Toulouse and CEPR)

09:40Discussion by Henri Pages (Banque de France)
Discussion by Joao Santos (Federal Reserve Bank of New York)
10:10

Value-at-Risk vs. Building Block Regulation in Banking

Thomas Dangl (Technische Universität Wien)
Alfred Lehar (Universität Wien)

10:50Discussion by Rajna Gibson (Universität Zürich)
Discussion by Reint Gropp (European Central Bank)
11:40

The Optimal Capital Structure of an Economy 

Hans Gersbach (Universität Heidelberg)

12:20Discussion by Javier Suarez (CEMFI, Madrid)
Discussion by Erlend Nier (Bank of England)

 Chair: Ernst-Ludwig von Thadden (Université de Lausanne, CEPR and JFI)
14:00

Some Evidence on the Consistency of Banks' Internal Credit Ratings

Mark Carey (Federal Reserve Board)

14:40Discussion by Xavier Freixas (Universitat Pompeu Fabra)
Discussion by Philip Lowe (Bank for International Settlements)
15:10

Basel II, Sovereign Ratings and Transfer Risk: External versus Internal Ratings

Stijn Claessens (University of Amsterdam)
Geert Embrechts (Rabobank International)

15:50Discussion by Juan Carlos Garcia (BBVA)
Discussion by Konstantinos Tsatsaronis (Bank for International Settlements)
16:40

Bank Regulation and Supervision: What Works Best? 

James R Barth (Auburn University)
Gerard Caprio, Jr (World Bank)
Ross Levine (University of Minnesota)

17:20Discussion by Mitch Petersen (Northwestern University)
Discussion by Myron Kwast (Federal Reserve Board)