Certain areas of Asia are pushing toward new banking capital rules – the Basel II accord in particular – at different times, but some worry that this may lead to questions about market fairness.
Some analysts say Basel II may be difficult to implement in emerging economies because of a lack in wide-ranging risk management systems.
Designed by the Basel Committee on Banking Supervision, Basel II was designed with G10 countries in mind, but Asian nations are showing an interest in implementing the new rules as well.
The rules focus on advanced measures for assessing risk and calculating the amount of capital it would take to offset market shocks.
Of the Asian nations, Hong Kong and Singapore seem the most interested in the new rules and would like to implement them as soon as possible. Other nations say they would be interested in putting them in place over a longer period of time.