Clearly, a shift in capital regulation as fundamental as Basel II entails significant transition costs for both banks and supervisors. However, even in the absence of Basel II, well managed financial institutions would have continued to update and improve their IT systems and risk management practices simply to keep pace with the evolving marketplace.
Estimates suggest that more than half of the world’s adult population – about 2.5 billion people, do not have access to basic financial services like a bank account, some kind of insurance or access to credit. Needless to add, most of these people are in developing countries like ours. Should banking be made a fundamental right?