The paper investigates how the mix of credit risk measurement methodologies under Basel capital adequacy rules influenced banking stability in the Netherlands during 2008-2015. It presents a first descriptive analysis that helps to examine the micro-regulation of individual banks and the macro-regulation of the banking system in one unified framework. Its goal is to draw regulators’ and researchers’ attention to interesting issues based on the comparison of the literature highlighting the weak points of the regulatory framework with what is observed in the dataset. Its purpose is to stimulate discussions on certain methodological and policy options.

Additional Metadata
JEL Financial Economics: General (jel G001), Banks; Other Depository Institutions; Mortgages (jel G21), Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies (jel G24), Government Policy and Regulation (jel G28)
Persistent URL dx.doi.org/10.2139/ssrn.3186540, hdl.handle.net/1765/112000
Journal De Nederlandsche Bank Working Paper Series
Citation
Deborgies Sanches, L., & Verbeek, M.J.C.M. (2018). Basel Methodological Heterogeneity and Banking System Stability: The Case of the Netherlands. De Nederlandsche Bank Working Paper Series. doi:10.2139/ssrn.3186540