Abstract
LL.M.
The Basel Capital Accords have been observed and implemented by banks throughout the world, although produced and formulated by a body which possesses no law making authority. Due to a lack of binding force the work of the Basel Committee on Banking Supervision is regarded as recommendations only and implemented and complied with on a voluntary basis. Against the backdrop of the recent global economic crisis and the development of banking supervision, I aim to come to a conclusion as to the nature of the Convergence of Capital Measurement and Capital Standards: A Revised Framework (Basel II), through a comparison between various possibilities of classification. The investigation of the legal nature and possible classification of Basel II is of significance as there is no real certainty regarding its current legal nature, except that it is a non-binding accord considered to be “soft law”. A further investigation will be performed on the development of banking supervision in the United States of America, South Africa and the United Kingdom and the impact of Basel II on each of these jurisdictions. A comparative study will be conducted which focuses primarily on the measures of implementation and impact which Basel II has had on the countries under consideration. The role which Basel II played in the recent world economic crisis deserves discussion due to the great impact that was felt by the banking industry on a global level, in particular the role which Basel II possibly played in the economic impacts felt by the United States of America, South Africa and the United Kingdom. By this study I wish to achieve clarity on the role which Basel II plays, its impact on banking law as a whole, as well as its nature.