In particular, the emergence of self-fulfilling trajectories by which borrowers and lenders pull back in fear of a tightening of financial conditions is less likely if it is commonly understood that market disruptions will trigger central bank intervention.
BIS central bankers’ speeches  1  So why has the Caribbean region been grappling with implementation of the Basel Accord? Perhaps the answer, in my respectful view, is that the Basel framework was never really designed with developing countries in mind, and implementation of any version in developing countries is likely to be fraught with difficulties.