Latest posts
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How Basel I Set the Stage for Basel II and III: The Origins of Global Banking Reform
Basel I represents the first international framework designed to regulate banks’ capital adequacy and reduce global financial risks. Developed by the Basel Committee on Banking Supervision (BCBS) in 1988, it required banks operating internationally to maintain a minimum capital ratio of 8% against their risk-weighted assets. This standard was intended to make sure banks had…
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How Cheap Money Shapes the Economy: The Real Impact of Low Interest Rates on Borrowing and Investment
Cheap money refers to a situation where borrowing costs are unusually low, allowing individuals and businesses to access credit easily. It often arises when a central bank—such as the Federal Reserve—sets very low interest rates to encourage economic growth. In such conditions, loans and credit become more affordable because the cost of borrowing declines. This…