Rufus Folorunso Akinyooye - St Clements University

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that country would become expensive and would thus discourage exports while encouraging imports. The demand for foreign currency to pay for imports and the decrease of it because the country was not exporting would raise the price of foreign currency until it becomes cheaper to pay for imports by exporting gold to the exporting countries to obtain the foreign currency needed. As gold continues to move out of a country the money supply decreases and prices would start coming down. The scenario would start repeating itself in the country that was exporting. A boom and burst scenario. In effect, even though the gold standard was useful in the control of money supply at home, it was cumbersome for international trade, as countries would have to be exchanging gold to pay for goods and services. A monetary realist even suggested that if the world should go back to the gold standard, its economy would be in the hands of countries like Russia and South Africa having enormous deposits of the commodity (Hein 1998). Another major obstacle to the gold standard is that it would not allow governments to do whatever it wanted to do in terms of policy whereby it could decide to create jobs, undertake projects it considered worthwhile or engage in expansionist tendencies like fighting wars. For these reasons, throughout the period of the European revolutions, governments were going on and off the gold standard until the Great Depression of 1930 after which it could be said that they permanently went off. The Great Depression itself was an approximately 10 year economic slump affecting all Western industrialized countries. It started with the collapse of the United States stock market in 1929 the reason for which included the proliferation of bank holding companies and investment companies creating debts and large bank loans that could not be liquidated. Many banks were forced into insolvency and in the U.S alone in 1933 11,000 out of its 25,000 banks failed. From the U.S. the depression became international because of the special and intimate relationship that had developed between the industrialized nations after the First World War. The United States had emerged from the war as the major creditor and financier of post-war Europe whose national economies had been greatly weakened by the War. With the collapse of the U.S. economy, its flow of credit to the European nations dried up and theirs started collapsing as well. Great Britain and Germany were the hardest hit as they were the major beneficiaries/debtors of the U.S. Prior to the Depression, governments usually expected the impersonal market forces of the private sector to eventually correct imbalances during business down turns. They failed that
time, and this inspired the government to effect fundamental changes in their economic structures collectively including control measures to ensure economic stability. Among the measures taken in 1933 was President Franklin D. Roosevelt’s devaluation of the gold content of the dollar to 59.06 percent of what it had been formerly and beginning in 1934 of a silver purchase program. Also in 1933 the United States Congress raised the buying price of gold from about US$21 to US$35 an ounce and called in all solid gold items except those tied up in wedding rings, dental fillings, and rare coins. The official explanation for this was to prevent holders and hoarders of gold from making a windfall profit from the devaluation of the gold content of the dollar. All gold certificates were also called in and Congress ruled that they were not to be exchanged for gold upon being called in but simply for ordinary paper dollars. From this point on the citizen’s ownership of gold in certificates and coins ceased to exist (Samuelson 1973). All the gold bullions confiscated by the United States government have been in the United States Gold Bullion Depository in Fort Knox, Kentucky U.S. A. since 1938. They are stored in concrete and steel vaults inside a bombproof building under heavily armed guards (Cribbs 1999). According to Wikipedia, the free Encyclopaedia the United States of America as at the 14 th of July 2004 holds the largest official reserves of gold in the whole world at 8,136.4 tonnes. Others in tonnes are as follows: - Germany 3,439.5 - IMF 3,217.3 - France 3,024.6 - Italy 2,451.8 - Switzerland 1,515.9 - Netherlands 777.5 - ECB 766.9 - Japan 765.2 - China, Mainland 600.0 - Spain 523.3 - Portugal 482.3 - Taiwan 423.6 - Russia 390.1 - India 357.8 - Venezuela 357.1 - Austria 317.1 - United Kingdom 312.5
Page 1: THE CHALLENGES OF IMPLEMENTING THE
Page 4 and 5: DEDICATION I dedicate this research
Page 6 and 7: Abstract The Basel 2 Accord is a co
Page 8 and 9: vii TABLE OF CONTENT CHAPTER I - In
Page 10 and 11: viii
Page 12 and 13: ix Table 4.1.2: Distribution of Res
Page 14 and 15: It should be mentioned that prior t
Page 16 and 17: The NDIC itself was created in 1988
Page 18 and 19: Nigeria as a sovereign has the addi
Page 20 and 21: (6) Crown Merchant Bank Ltd. 1988 1
Page 22 and 23: what makes up the Nigerian banking
Page 24 and 25: maximum losses the bank’s counter
Page 26 and 27: Cribb (1999) also show that in othe
Page 28 and 29: to redeem it from the issuing bank
Page 30 and 31: Honohan (1997) appreciated this kid
Page 32 and 33: An amendment to the Act in 1865 gra
Page 36 and 37: - Lebanon 286.8 - Belgium 257.8 - P
Page 38 and 39: The Bretton woods agreement The Sec
Page 40 and 41: and forms of agreements between cre
Page 42 and 43: for losses and of Capital reserves
Page 44 and 45: (d) The Committee promised to close
Page 46 and 47: development banks. They are to attr
Page 48 and 49: 20% (1) Claims on banks in Nigeria/
Page 50 and 51: As mentioned above CBN does not mak
Page 52 and 53: As mentioned above the Group of Ten
Page 54 and 55: Items 41-43 - Are on the amendments
Page 56 and 57: Item 54 directs that at national di
Page 58 and 59: Sovereign to AA- A - to BBB- to B -
Page 60 and 61: Item 72 states that lending fully s
Page 62 and 63: Item 81 states that at national dis
Page 64 and 65: Item 100 says whether the bank inte
Page 66 and 67: wider range of credit risk mitigant
Page 68 and 69: collateral will receive the risk we
Page 70 and 71: Supervisory haircuts Item 151 conta
Page 72 and 73: Items 173 to 177 are on the treatme
Page 74 and 75: - An instrument that embodies an ob
Page 76 and 77: (1) Composition of minimum requirem
Page 78 and 79: orrower and facility grades of pool
Page 80 and 81: Item 425 directs that borrowers and
Page 82 and 83: of member countries but stress that
Page 84 and 85:
lending standards in use when the d
Page 86 and 87:
(3) statistical default models. Oth
Page 88 and 89:
REQUIREMENTS FOR RECOGNITION OF LEA
Page 90 and 91:
national Supervisors when there is
Page 92 and 93:
Item 550 defines Excess spread as g
Page 94 and 95:
(f) An opinion must be obtained fro
Page 96 and 97:
Item 645 outlines three methods o c
Page 98 and 99:
Footnote to the title The Standardi
Page 100 and 101:
Item 664 is on the Advanced Measure
Page 102 and 103:
Under the IRB approach, a bank esti
Page 104 and 105:
Nigeria responded to this questionn
Page 106 and 107:
of all external financial assets of
Page 108 and 109:
Accord is of sovereigns, banks and
Page 110 and 111:
of this fact is that under the Base
Page 112 and 113:
the same nationality. The rule of t
Page 114 and 115:
sovereign ratings. The eight variab
Page 116 and 117:
investor makes the final decision t
Page 118 and 119:
Brazil (B2/B+/B+) China A2/BBB/A-)
Page 120 and 121:
Latvia (A2/BBB+/BBB+) Lithuania (A3
Page 122 and 123:
Slovakia (A3/BBB/BBB+) Slovenia (As
Page 124 and 125:
Israel (A2/A-/A-) Malaysia (Baa1/A-
Page 126 and 127:
Russia (Baa3/Ba2/NR) Spain Aaa/AA+/
Page 128 and 129:
(B1/BB-/BB-) Source: Global Economi
Page 130 and 131:
UNDER BASEL 1 AAA 0.03 8 1.6 1.13 A
Page 132 and 133:
other on-site expenses, plus a US$1
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39 CHI Channel Islands - - - - 40 C
Page 136 and 137:
108 LSO Lesotho 6 6 6 6 109 LBR Lib
Page 138 and 139:
176 ZAF South Africa 3 3 3 3 177 ES
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ultimately lead to calls for offici
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Nigerian banks, like banks all over
Page 144 and 145:
Totals 100.0 100.0 100.0 100.0 100.
Page 146 and 147:
Prior to the on-going consolidation
Page 148 and 149:
Item 726 to this end states that ba
Page 150 and 151:
Item 743 directs the bank to establ
Page 152 and 153:
Principle 4: Supervisors should see
Page 154 and 155:
(4) Procedures for the efficient re
Page 156 and 157:
number of issues which according to
Page 158 and 159:
(j) Inability to settle guaranteed
Page 160 and 161:
With the above developments one wou
Page 162 and 163:
Item 760 and 761 are on how Supervi
Page 164 and 165:
Structural Challenges - Pillar 3 Pi
Page 166 and 167:
if investors do not know the risk p
Page 168 and 169:
month would be the due principal an
Page 170 and 171:
(1) Disagreement between Board and
Page 172 and 173:
3.Implementation of Basel 2: Practi
Page 174 and 175:
3. Implementation of Basel II in Ni
Page 177 and 178:
CHAPTER THREE RESEARCH METHODOLOGY
Page 179 and 180:
Decision rule For decision rule, wh
Page 181 and 182:
Fig. 2: Response Distribution on ef
Page 183 and 184:
4. Are there internal rating system
Page 185 and 186:
Fig.6 Response on the issue of fore
Page 187 and 188:
Fig.8 Response Distribution on asse
Page 189 and 190:
Fig.10 Response Distribution on the
Page 191 and 192:
Fig.12 Response Distribution on the
Page 193 and 194:
Table 4.2.1: Response Distribution
Page 195 and 196:
3. Should the following be disclose
Page 197 and 198:
In another response it was also dis
Page 199 and 200:
v) Geographical distribution of exp
Page 201 and 202:
4.3 ANALYSIS OF QUESTIONS ON SUPERV
Page 203 and 204:
Table 4.3.4 Response on the issue o
Page 205 and 206:
BCP 24.0 Host Country Supervision
Page 207 and 208:
10. The issue of resurgence of high
Page 209 and 210:
When the respondents were presented
Page 211 and 212:
hypothesis chosen are deemed true b
Page 213 and 214:
improved working environment need n
Page 215 and 216:
H12: Inadequate operational and fin
Page 217 and 218:
Sub-Hypotheses on structural change
Page 219 and 220:
SA 41 71 -30 900 12.67 A 28 71 -43
Page 221 and 222:
Decision From the table 4.5.5 above
Page 223 and 224:
H8: The present management capacity
Page 225 and 226:
H10: The issue of resurgence of hig
Page 227 and 228:
SD 36 71 -35 1225 17.25 TOTAL 284
Page 229 and 230:
Decision The result in table 4.5.14
Page 231 and 232:
CHAPTER V DISCUSSION OF THE RESULTS
Page 233 and 234:
(b) It has an Operational risk mana
Page 235 and 236:
Another significant finding in this
Page 237 and 238:
e implemented. Judging from the cal
Page 239 and 240:
Proof for Null hypothesis Twelve (H
Page 241 and 242:
As shown in this research many inst
Page 243 and 244:
anks need to fully comply with the
Page 245:
profit that could translate into lo
Page 248 and 249:
(b) No (c) (d) I Don’t Know. (e)
Page 250 and 251:
(b) No If yes, what were they? (8)
Page 252 and 253:
(1) As supervisors, would you say c
Page 254 and 255:
(iv) Procedures for efficient resol
Page 256 and 257:
LC (C) MNC “ 1.6 Information shar
Page 258 and 259:
LC (C) MNC “ 11.0 Country Risk (d
Page 260 and 261:
LC (C) MNC “ 22.0 Remedial Measur
Page 262 and 263:
(D) NC = Noncompliant (8) How soon
Page 264 and 265:
(a) Yes (b) No (c) I don’t know.
Page 266 and 267:
(x) Total and Tier 1 capital ratio.
Page 268 and 269:
(a) Yes (b) No © I don’t know. (
Page 270 and 271:
successfully implemented. 2. The hi
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Rufus Folorunso Akinyooye - St Clements University

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