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CAPITAL REQUIREMENTS AND BANK BEHAVIOUR: THE IMPACT OF THE BASLE ACCORD

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At the time of the moratorium, the total outstanding balance was close to 6 bil- lion DEM. The events that followed had a major influence on the average bond hold- er’s psyche and risk preferences. The build-up of political tensions that led to the col- lapse of SFRY left Serbia and Montenegro united in an effort to continue the legacy of the previous country. However, with civil war on its borders, FRY was not setting economic development as its top priority. By 1992, FRY was politically and econom- ically isolated. A high level of inflation was followed by rapid depreciation of the dinar. Converting the dinar into.

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CAPITAL REQUIREMENTS AND BANK BEHAVIOUR: THE IMPACT OF THE BASLE ACCORD

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