ABSTRACT

This chapter takes the first cut at testing a selection of hypotheses that explain uneven degrees of compliance with the baseline rules of the 1988 Basel Accord. To this point, I have presented measures of the degrees of compliance with the provisions of the Accord and some of the variables that might be used to explain why some states adopted strict interpretations of the baseline rules while others adopted lax or non-compliant interpretations. In this chapter, I subject these explanations to a series of econometric examinations.