New banking regulations threaten financial security in developing countries.
The Basel Capital Accord II introduced new rules for banks to have enough money to cover risks, be watched closely, and be transparent to the public. It links bank money to risk, improves how we measure money and risk, and broadens the types of risks considered. It suggests a new way to manage risks, which could help make global banking rules more consistent. However, it might harm the financial safety of banks in developing countries.