For the 28 jurisdictions that are members of the Basel Committee on Banking Supervision, adopting Basel banking standards is a given. But why are some non-member developing countries embracing the reforms when they don’t have to? The answers vary by country, but the final lesson is that regulators should carefully evaluate the advantages and disadvantages of adopting Basel regulations in whole or in part for their nation’s unique situation.
Central Bank of Kenya
Sub-Saharan African central banks are racing to enhance financial regulation, especially surrounding capital conservation and balance-sheet fortification. Ghana and Uganda are the latest to join the race having enforced ever stricter requirements on their banks, falling into step with the rest of the world in the aftermath of the global financial crisis.