Submission to the Basle Committee on Banking Supervision: CP3 and the Developing World

The proposals for Basle 2 contained in the third consultative package contain a number of important positive features, particularly in the standardised approach. From the perspective of developing countries, positive features of Basle 2 refer,for example, to the removal of the OECD/non-OECD distinction and the reduction of the excessive incentive towards short-term lending to lower rated borrowers.