| Abstract: |
Whilst the predecessor (Part I) to this paper addresses criticisms and
challenges which have arisen in response to recent Basel Committee's
initiatives aimed at addressing capital and liquidity standards, the present
paper highlights further measures which are being introduced by the Basel
Committee to address such criticisms and challenges. As well as presenting and
drawing attention to proposals which could serve as means of addressing
challenges presented by liquidity risks, Part I of the paper concludes with
the result that market based regulation is an essential and vital tool in the
Basel Committee's efforts to address some of the challenges presented by
liquidity risks. The present paper highlights the Basel Committee's
acknowledgement of this conclusion. Furthermore, it draws attention to other
areas which are considered to constitute fertile substrates for purposes of
future research. This paper will also illustrate why the potential of banking
regulations and disclosure requirements to impact risk taking levels is not
only dependent on certain factors such as the dissemination of information to
appropriate recipients, appropriate volume of disseminated information, when
to disseminate such information, but also on other factors such as ownership
structures and effective corporate governance measures aimed fostering
monitoring, supervision and accountability. |