The new capital accord and its possible impact on small jurisdictions

Abstract

This paper describes the salient features of the New Capital Accord and its implications for regulators in small jurisdictions. It is argued that the provisions of the Accord will have to be implemented in small jurisdictions in spite of the fact that they were intended primarily for banks operating internationally. This is likely to create a number of problems for regulators in such jurisdictions concerning primarily the interpretation of the Accord, the exchange of information and the collection of data of sufficient quality for the purposes of the Accord.