Grace W. Chang


The Note argues that although the proposal fo a risk-based capital framework is a positive move toward facilitating international cooperation on bank supervisory matters, it may encoutner a number of difficulties in implementation. Part I examines the recent internationalization and growing interdependency of the world's banks as well as the role that Basle Committee plays in fostering intenrational cooperation. Part II examines the proposed agreement for a risk-based capital framework. Part III analyzes the difficulties that may arise in the Proposal's implementation. This Note concludes that despite the lack of an enforcement mechanism, the Proposal will in all likelihood achieve its purpose because it stands as a true model of international banking cooperation.