Risk-based capital standard for banks: a critique

Authors

N. Arua, Ebonyi State University, Abakaliki

Publisher

Research Department, Central Bank of Nigeria

Keywords

Minimum capital requirement, Credit risk, Benchmark risk weights

Abstract

This paper presents a critique of the form of the risk- based capital standard known as Basel I & II. It examines the likely implication of the Based II capital accord for the Nigerian banking system and advises that the CBN should consider carefully the cost of implication of the new Accord before developing a timetable for its implementation.

Author Bio

Arua is a lecturer in the Department of Banking and Finance, Ebonyi State University, Abakaliki.

Publication Title

CBN Economic and Financial Review (EFR)

Issue

3

Volume

44

Recommended Citation

Arua N. (2006). Risk-Based Capital Standard for Banks: a critique: Economic and Financial Review, 44 (3), 63-87.