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International compliance with new Basel Accord principles for risk governance
Author(s) -
Wright Sue,
Sheedy Elizabeth,
Magee Shane
Publication year - 2018
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12213
Subject(s) - compliance (psychology) , corporate governance , accounting , business , basel ii , financial crisis , operational risk , basel iii , regulatory reform , financial regulation , international banking , financial system , basel i , risk management , economics , finance , capital requirement , market economy , psychology , social psychology , macroeconomics , incentive
We assess international compliance with the Basel Committee's 2010 guidance on governance of banking organisations. Based on an extensive examination of regulatory documents in selected advanced economies, we find that reform is incomplete in jurisdictions most affected by the financial crisis, and with the largest financial centres. In contrast, other countries less affected by the financial crisis have enacted risk governance reforms as protection against potential future contagion. We provide insights for policy‐makers charged with improving governance at banks, and a richer understanding for international regulators as they revise the guidelines and aim for greater compliance at the national level.