Abstract
Damaged by the Great Depression — though not by a self-inflicted injury, as happened in 2007 — banks used the capital they obtained from the Reconstruction Finance Corporation (RFC)1 to redress their balance sheets rather than lending. Global banks in the USA, the UK, Germany, France, Belgium and the Netherlands repeated that practice with the lavish amount of money they received from governments during the recent economic crisis. And Japanese banks have done the same, on and off since the early 1990s.
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Notes
D. N. Chorafas, Sovereign Debt Crisis and the New Normal, Paigrave Macmillan, Basingstoke, 2011.
GAAP and IFRS have significant differences, but there are other standards as well as IFRS versions. The French, for example, have one that is not totally compatible with what the IASB has designed. D. N. Chorafas, IFRS, Fair Value and Corporate Governance: Its Impact on Budgets, Balance Sheets and Management Accounts, Butterworth-Heinemann, London/Boston, 2005.
D. N. Chorafas, IFRS, Fair Value and Corporate Governance: Its Impact on Budgets, Balance Sheets and Management Accounts, Butterworth-Heinemann, London/ Boston. 2005.
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© 2012 Dimitris N. Chorafas
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Chorafas, D.N. (2012). Basel III Is a Grand Compromise, Not a Bold Initiative. In: Basel III, the Devil and Global Banking. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, London. https://doi.org/10.1057/9780230358423_4
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DOI: https://doi.org/10.1057/9780230358423_4
Publisher Name: Palgrave Macmillan, London
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