Central Bank of Nigeria, Research Department
Banks minimum capital requirement, Credit risk, Market risk, Operational risk, Basel 1 & 11 capital accords, Risk weighted assets, Benchmark risk weights
The paper presents a critique of the form of the risk-based capital standards known as Basel 1 & 11. The substance of being capital adequacy requirements on risk sensitivity remains unquestionable. It also examines the likely implications of the Basel 11 Capital Accord for the Nigerian banking system and advises that the CBN should consider carefully the cost implication of the new Accord before developing timetable for its implementation.
Arua, N. (2006).Risk-based capital standards for banks: a critique. CBN Economic and Financial Review, 44(3), 63-87.