The Impact of Basel Standard on Macroeconomic : Case of Japan and Malaysia

Abstract

Bank of International Settlement (BIS) has introduced a new framework in order to strengthen the regulation in term of risk coverage and security of lending activity held by financial institution. However， the framework is seen to give a massive impact to some macroeconomic indicators. Therefore，this study aims to analyze the trend and impact of macroeconomic performance during the irtroduction of Basel Standard. Since the impact of macroeconomic performance of some countries reflects in different ways to the standard， hence this study focused on comparative study between developed and developing country represent by Japan and Malaysia. Study period covered from 2000 to 2015. Gross domestic product (GDP) ， inflation rate (IR) and annual exchange rate (AER) are among the macroeconomic indicators considered into this study，all data are gained from world bank 's website.