entity · derived
Basel framework
Derived node: assembled mechanically from the claims carrying basel-framework. A roster, not an adjudicated definition.
Every claim under this term
- 3405660-027 : The Basel framework serves indirect hedge fund regulation by aligning regulatory capital requirements more closely with underlying risks and by giving banks and supervisors several options for assessi
- 3405660-030 : Applying the Basel Framework to hedge fund regulation conforms to the requirements of incomplete contract theory, which supplies the theoretical justification for the indirect approach.
- 3405660-031 : Indirect regulation removes the problem of missing jurisdictional authority and therefore of jurisdictional arbitrage, because the Basel Framework applies to banks worldwide rather than to funds in an
- 3405660-033 : The Basel Framework reduces systemic risk by regulating bank credit standards, which indirectly constrains hedge fund leverage and makes credit markets safer.
- 3405660-034 : Market discipline, internal ratings and supervisory review under the Basel Framework change bank lending practice and disclosure, which in turn lowers hedge fund leverage and mitigates moral hazard of
- 3405660-036 : The internal ratings based approach reduces information asymmetry because internal ratings capture supplementary borrower information that external credit assessors cannot reach and cover a broader ra
- 3405660-039 : Because the Basel Framework applies on a consolidated basis to the holding companies of banking groups, it captures risks across the whole group and so addresses the complex structures that defeat pru
- 3405660-040 : Indirect regulation through Basel banking supervision removes the need for joint regulatory action and avoids each national regulator's transaction and implementation costs, because an international f