scholarly journals Kenya

2020 ◽  
pp. 218-238
Author(s):  
Radha Upadhyaya
Keyword(s):  
Central Bank ◽  
Driving Force ◽  
Banking Sector ◽  
Financial Sector ◽  
Policy Networks ◽  
Basel Ii ◽  
International Standards ◽  
International Policy ◽  
Policy Ideas

In Kenya the impetus for Basel implementation has come from the regulator, the Central Bank of Kenya (CBK), which is highly independent, has strong links to international policy networks, and is very receptive to international policy ideas. Since 2003, the incumbent politicians have also been keen to adopt the latest international standards in order to attract investment into Kenya’s financial sector. Meanwhile, as the banking sector is relatively well capitalized, there has been little opposition from banks, with some international and large local banks being mildly in favour of Basel II and III adoption. In the Kenyan case the regulator has been the driving force for Basel adoption, supported by internationally oriented politicians and banks.

scholarly journals Nigeria

2020 ◽  
pp. 260-282
Author(s):  
Florence Dafe
Keyword(s):  
Private Sector ◽  
Banking Sector ◽  
Policy Networks ◽  
Basel Ii ◽  
Access To Finance ◽  
International Policy ◽  
Regulatory Standards ◽  
Important Means

In Nigeria regulators have gradually adopted Basel I, II, and III, although implementation and enforcement have been slow. The impetus for Basel adoption has come primarily from regulators, who are embedded in international policy networks. They consider Basel II and III the most appropriate set of regulatory standards to stabilize and manage risk in Nigeria’s large, internationalized banking sector. While Basel adoption was not a salient issue among Nigeria’s politicians, Nigeria’s large internationally active banks welcomed the implementation of Basel II as an important means to enhance their competitiveness and signal soundness to markets. These banks play an important role in providing employment and access to finance for the private sector, and their resolution would meet with resistance from politicians and lead to a loss of confidence in Nigeria’s banking sector.

scholarly journals Pakistan

2020 ◽  
pp. 105-125
Author(s):  
Natalya Naqvi
Keyword(s):  
World Bank ◽  
Financial Services ◽  
Banking Sector ◽  
Basel Ii ◽  
International Standards ◽  
Basel Iii ◽  
The World Bank ◽  
The World ◽  
Over Time

Pakistan has the highest level of implementation among our case study countries. The impetus for converging on international standards has come from different actors over time. The adoption of Basel I adoption in the 1980s was driven by the World Bank and IMF. In the 1990s and early 2000s, the adoption of Basel II was driven first by politicians promoting the expansion of financial services, and then by banking sector regulators. Most recently, as banks have internationalized, they have championed the implementation of Basel III. Pakistan is one of the few cases where all three major actors—politicians, regulators, and major banks—are now aligned behind the implementation of the standards, leading to a high and ambitious level of implementation.

scholarly journals Ethiopia

2020 ◽  
pp. 327-348
Author(s):  
Toni Weis
Keyword(s):  
Banking Sector ◽  
Basel Ii ◽  
International Standards ◽  
Financial Industry ◽  
Financial Repression ◽  
Asian Tiger ◽  
National Bank ◽  
Ethiopian Government ◽  
Domestic Banks ◽  
Regulatory Convergence

Ethiopia has chosen to diverge from international standards and not to adopt any aspect of Basel II or III. Ethiopia has the least internationalized banking sector among our case countries. Despite significant exposure to the Basel standards through donors and the IMF, banking supervisors at the National Bank of Ethiopia (NBE) have little use for Basel II and III. Ethiopia’s decision to diverge from the international Basel framework results from a strong preference for political control over the financial industry. The Ethiopian government seeks to emulate the example of East Asian ‘tiger’ economies, for whom financial repression was a key tool in the pursuit of rapid industrialization. However, as Ethiopia’s domestic banks struggle to sustain transformative growth, pressures for greater financial openness (and, by extension, for increased regulatory convergence) are beginning to mount.

scholarly journals Regulatory assessment of the bank market risk: international approaches and Ukrainian practice

2018 ◽  
Vol 13 (4) ◽  
pp. 73-84 ◽  
Author(s):  
Yana Kuznichenko ◽  
Serhiy Frolov ◽  
Fedir Zhuravka ◽  
Mykola Yefimov ◽  
Volodymyr Fedchenko
Keyword(s):  
Banking Sector ◽  
Market Risk ◽  
Capital Requirements ◽  
Basel Ii ◽  
International Standards ◽  
Regulatory Capital ◽  
Alternative Scenarios ◽  
Optimal Approach ◽  
Method R ◽  
Risk Coverage

The implementation of international standards for the bank risk assessment and market risk, in particular, in Ukrainian banking practice is aimed at achieving common standards for regulating banking activities in different countries. This should help to increase the banking sector stability in Ukraine and, accordingly, increase the interest of foreign investors.The article deals with the methodological approaches to assessing the bank market risk (in particular, SA, IMA and R-SbM approaches) recommended by the Basel Committee on Banking Supervision in terms of standardization and unification of the normative framework of capital requirements for Ukrainian banks. Considering the analysis results, it was determined that the choice and implementation of an optimal approach in the context of Ukrainian banking practice can be carried out in one of two alternative scenarios: 1) a simplified version of a sensitivity based method (R-SbM); and 2) a recalibrated version of the Basel II standardized approach. In this case, the Basel II recalibrated version is more acceptable for use by banks, since it is most relevant to volume and complexity of transactions carried out by Ukrainian banks.The obtained results are aimed at improving the existing methodology for calculating the adequacy ratio of banks' regulatory capital (N2), which currently considers only the needs for credit risk coverage, and at refining the methodology in terms of considering banks' market-risk coverage needs.

RBI: CARVING A NEW ROLE AS THE CENTRAL BANK

Paradigm ◽  
1997 ◽  
Vol 1 (1) ◽  
pp. 148-153
Author(s):  
Amitabh Tewary ◽  
Dhananjay Bhardwaj
Keyword(s):  
Central Bank ◽  
Banking Sector ◽  
Financial Sector ◽  
British Raj ◽  
Reserve Bank ◽  
Bank Of England ◽  
The Many ◽  
Reserve Bank Of India ◽  
Legislative Assembly

Among the many legacies of the British Raj, a few have endured the winds of change on account of an inbuilt element of indispensability and have, therefore, retained their relevance with their compositions in corporating the required corrections from time to time. One such prominent edifice is the Reserve Bank of India (hereafter referred to as RBI) which since its inception in 1935 through an act of then Indian Legislative assembly has grown from strength to strength, from being a shareholder's bank, modelled on the lines of the Bank of England, to being a watchdog of Indian Banking sector and financial sector reforms of the '90s it has seen and survived a lot.

scholarly journals Tanzania

2020 ◽  
pp. 196-217
Author(s):  
Hazel Gray
Keyword(s):  
Central Bank ◽  
Money Laundering ◽  
Financial Sector ◽  
Basel Ii ◽  
Foreign Banks ◽  
Selective Approach ◽  
Market Driven ◽  
Regulatory Harmonization ◽  
Development Banks ◽  
Pattern Of Implementation

Tanzania has been a slow and cautious adopter of Basel standards, although a faster pace of adoption emerged after 2009. From 1991 to 2008 Tanzania liberalized its financial sector, but a gap emerged between the commitment to adopting Basel standards and the actual pattern of implementation and enforcement. It was only from 2009 onwards that Basel implementation was prioritized as Tanzania moved to regulator- and market-driven convergence. Regulator preferences reflected the appointment of a new governor at the Bank of Tanzania and the influence of regional commitments to regulatory harmonization. Over the same period, politicians’ commitment to deep liberalization faltered and demands for policy-based lending returned. This led to a selective implementation of Basel II and III and higher levels of enforcement. Domestic and foreign banks initially showed little interest in implementation but their preferences have shifted because of pressures from parent banks and anti-money laundering concerns. The central bank adopted a selective approach to Basel and introduced tailored regulation for development banks.

scholarly journals An Analysis Of The United Arab Emirates Banking Sector

2011 ◽  
Vol 6 (1) ◽  
Author(s):  
M. Anaam Hashmi
Keyword(s):  
Central Bank ◽  
United Arab Emirates ◽  
Big Five ◽  
Banking Sector ◽  
Basel Ii ◽  
Foreign Banks ◽  
Global Competition ◽  
Global Challenges ◽  
Positive Factor

The UAE has a fragmented banking sector. A total of 46 domestic and foreign banks are operating in the UAE. The banking sector is somewhat protected; however, foreign banks are becoming increasingly active in the economy. The banking sector is gearing up to meet global challenges by adopting Basel II banking standards. The big five banks dominate the banking sector and all of the large ten banks are financially sound. The banking sector is well managed by the UAE Central Bank which is a positive factor for the countrys growth and globalization efforts because the UAE banking sector has grown drastically and is gearing up for global competition.

scholarly journals 5.5. ФИНАНСОВАЯ УСТОЙЧИВОСТЬ БАНКОВ: ЗАРУБЕЖНЫЕ И РОССИЙСКИЕ ПОДХОДЫ К ОЦЕНКЕ

2020 ◽  
Author(s):  
A.V. Morozov ◽  
A.V. Morozov ◽  
A.V. Morozov ◽  
A.V. Morozov ◽  
A.V. Morozov
Keyword(s):  
Central Bank ◽  
Russian Federation ◽  
Financial Stability ◽  
Banking Sector ◽  
Financial Sector ◽  
International Experience ◽  
Comprehensive Assessment ◽  
Financial Indicators ◽  
Systemic Risks ◽  
The Russian Federation

В статье рассмотрены подходы международных и национальных надзорных органов к оценке финансовой устойчивости банков и банковского сектора. Автором показано, что подходы международных надзорных органов базируются на сочетании микропруденциального и макропруденциального анализа и включают комплексную оценку основных финансовых показателей и банковских рисков. Подходы Центрального банка РФ опираются на международный опыт и направлены на обеспечение устойчивости банков к системным рискам в финансовом секторе экономики.The article discusses the approaches of international and national supervisory authorities to assess the financial stability of banks and the banking sector. The author shows that the approaches of international supervisory authorities are based on a combination of microprudential and macroprudential analysis and include a comprehensive assessment of key financial indicators and banking risks. The approaches of the Central Bank of the Russian Federation are based on international experience and are aimed at ensuring the resilience of banks to systemic risks in the financial sector of the economy.

scholarly journals Measuring the systemic risk in the South African banking sector

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Gregory M. Foggitt ◽  
Andre Heymans ◽  
Gary W. Van Vuuren ◽  
Anmar Pretorius
Keyword(s):  
Financial Crisis ◽  
South African ◽  
Systemic Risk ◽  
Banking Sector ◽  
Risk Index ◽  
Financial Sector ◽  
Ethical Behaviour ◽  
The South ◽  
Case Scenario ◽  
Worst Case

Background: In the aftermath of the sub-prime crisis, systemic risk has become a greater priority for regulators, with the National Treasury (2011) stating that regulators should proactively monitor changes in systemic risk.Aim: The aim is to quantify systemic risk as the capital shortfall an institution is likely to experience, conditional to the entire financial sector being undercapitalised.Setting: We measure the systemic risk index (SRISK) of the South African (SA) banking sector between 2001 and 2013.Methods: Systemic risk is measured with the SRISK.Results: Although the results indicated only moderate systemic risk in the SA financial sector over this period, there were significant spikes in the levels of systemic risk during periods of financial turmoil in other countries. Especially the stock market crash in 2002 and the subprime crisis in 2008. Based on our results, the largest contributor to systemic risk during quiet periods was Investec, the bank in our sample which had the lowest market capitalisation. However, during periods of financial turmoil, the contributions of other larger banks increased markedly.Conclusion: The implication of these spikes is that systemic risk levels may also be highly dependent on external economic factors, in addition to internal banking characteristics. The results indicate that the economic fundamentals of SA itself seem to have little effect on the amount of systemic risk present in the financial sector. A more significant relationship seems to exist with the stability of the financial sectors in foreign countries. The implication therefore is that complying with individual banking regulations, such as Basel, and corporate governance regulations promoting ethical behaviour, such as King III, may not be adequate. It is therefore proposed that banks should always have sufficient capital reserves in order to mitigate the effects of a financial crisis in a foreign country. The use of worst-case scenario analyses (such as those in this study) could aid in determining exactly how much capital banks could need in order to be considered sufficiently capitalised during a financial crisis, and therefore safe from systemic risk.

Modelling the UK Banking Sector

2010 ◽  
Vol 214 ◽  
pp. F67-F72
Author(s):  
Ray Barrell ◽  
Simon Kirby ◽  
E. Philip Davis
Keyword(s):  
Banking Sector ◽  
National Income ◽  
Financial System ◽  
Financial Sector ◽  
Equation Model ◽  
Dsge Models ◽  
Real Economy ◽  
Equilibrium Models ◽  
Return To Equilibrium ◽  
Dynamic Stochastic

The financial crisis that emerged during 2007 and overwhelmed the financial system in late 2008 also brought to the fore some of the obvious failings of the style of modelling that had been fashionable in central banks in the previous decade. The shift to Dynamic Stochastic General Equilibrium models (DSGE) of whatever sort left no real scope for money and financial markets to have an impact on the real economy. This was in part because equilibrium models based on theory are unlikely to be designed to cope with a period of disequilibrium, which is when the financial system becomes important in macroeconomics. DSGE models come in various guises, and it was common to operate with a three-equation model with demand, supply and the interest rate as the equations. It is hard to see how the financial sector could fit into this, or what use it would be even if it were included. Larger DSGE models that respect the national income identity are easier to augment with a financial sector; but even that developed by the US Federal Reserve (see Edge, Kiley and Laforte, 2010) tends to return to equilibrium rather more rapidly than seems reasonable.

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