„Basel III“: The reform of the existing regulatory framework of the Basel Committee on Banking Supervision for strengthening the stability of the international banking system

2011 ◽  
pp. 167-184 ◽  
Author(s):  
Christos VI. Gortsos
Keyword(s):  
Banking System ◽  
Regulatory Framework ◽  
Basel Iii ◽  
International Banking ◽  
Banking Supervision ◽  
Basel Committee ◽  
The Stability

MONETARY POLICY AND FINANCIAL INTERMEDIATION IN BASEL III: GLOBAL TRENDS

2019 ◽  
Vol 4 (3) ◽  
pp. 39-47
Author(s):  
Larysa BATIUK
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Federal Reserve ◽  
Global Economy ◽  
Financial Intermediation ◽  
Macroeconomic Fluctuations ◽  
Basel Iii ◽  
Banking Supervision ◽  
Basel Committee ◽  
Real Wealth

Introduction. The article deals with the peculiarities of the transmission mechanism of monetary policy in the implementation conditions of the Basel Committee requirements on Banking Supervision "Basel III". The problem of the mechanism violation of the classical monetary multiplier, the imbalance of the monetary circulation system, the frequency increase of debt defaults and the amplitude of macroeconomic fluctuations in the global economic system are marked as a study result of the effects of the credit mitigation policy conducted by the US Federal Reserve amid the global financial crises of the last decade and changes in the nature of financial intermediation based on the synthesis of asset securitization and structured finance instruments. The purpose of this article is to investigate changes in monetary policy and financial intermediation in the implementation context of the Basel Committee on Banking Supervision Basel III as a source of imbalance in the global economy. Research methodology. The system method, method of scientific abstraction, methods of analysis and synthesis, statistical, comparison, generalization, scientific prediction were used. Results. The article deals with the implications of implementing the Basel Committee on Banking Supervision Basel I and Basel II in the area of monetary policy and financial intermediation; peculiarities of monetary multiplier mechanism operation in modern conditions are revealed; the possible consequences of implementing Basel III requirements for the mechanism of monetary supply formation in the world economy are analysed; the change in the role of gold as monetary metal in central bank foreign exchange reserves and the implications of these changes in terms of price dynamics and the distribution of real wealth in the global economy are examined. Conclusions. It is proposed to consider the requirements of the Basel Committee on Banking Supervision "Basel III" as such, which will exacerbate the volatility of global financial markets, increase the likelihood of increasing the frequency of debt defaults and, given the possibility of using gold as a means of redistribution of real wealth in the global economy, will cause an increase in the amplitude of macroeconomic fluctuations. Keywords: monetary policy; financial intermediation; the central bank; US Federal Reserve; Basel III; bank capital structure, monetary base; money multiplier, correspondent accounts; money supply; monetary gold; global economy.

scholarly journals Bank Stability Measures in Dual Banking System: A Critical Review

2019 ◽  
Vol 5 (2) ◽  
pp. 59
Author(s):  
Norzitah Abdul Karim ◽  
Amirul Afiff Muhamat ◽  
Azreen Roslan ◽  
Sharifah Faigah Syed Alwi ◽  
Mohamad Nizam Jaafar
Keyword(s):  
Global Financial Crisis ◽  
Financial Institution ◽  
Banking System ◽  
Banking Supervision ◽  
Basel Committee ◽  
System A ◽  
Overall Stability ◽  
Regulatory Bodies ◽  
Banking Stability ◽  
Definition Of

The 2007-2009 Global Financial Crisis showed that despite reported as ‘healthy’ financial institution prior to crisis had indeed suffered many problems including liquidity during the crisis. Thus, there is confusion on the healthy financial institutions, leading to loss of confidence on the overall stability of the banking system. Thus, there is an urgent need to review the current measures of financial as well as banking stability. This paper aims to look at the definition of ‘stability’ used in the academic researches and by different regulatory bodies, like International Monetary Fund, Basel Committee for Banking Supervision (BCBS) and central banks in selected countries with dual banking systems. It is then, critically review indicators used as measures of financial as well as banking stability. This review is hope to identify areas of strengths as well as weaknesses of the current measures of stability and serves as foundation for further research in future.

Actual Problems of Banking Regulation in Kazakhstan

2020 ◽  
Vol 11 (2) ◽  
pp. 544
Author(s):  
Kulyash Zh. SADVOKASSOVA ◽  
Gaukhar S. KODASHEVA ◽  
Nazgul KHAMITKHAN ◽  
Aizhan Ye. ZHAMIYEVA ◽  
Rustem K. SADVOKASSOV
Keyword(s):  
Financial Market ◽  
Current Practice ◽  
Banking Regulation ◽  
Practical Significance ◽  
Regulation System ◽  
Basel Iii ◽  
International Banking ◽  
Banking Supervision ◽  
University Professors ◽  
The Face

The article discusses the current problems of banking regulation in Kazakhstan in the face of growing uncertainty in the financial market. In this context, an assessment of the current practice of banking regulation has been given, the strengths and weaknesses of this process have been identified, as well as problems with the introduction of Basel III international banking supervision standards and ways to further improve the national banking regulation system in modern conditions. All these questions considered in this article determine the relevance of the presented material. The materials of the article suggest practical significance for university professors of economic specialties.  

scholarly journals Transformation of the Ukrainian banking system regulation: a new horizon of compliance with the international framework

2019 ◽  
Vol 14 (4) ◽  
pp. 22-33
Author(s):  
Lyubov Khudoliy ◽  
Oleg Bronin
Keyword(s):  
Systematic Approach ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Basel Iii ◽  
Banking Supervision ◽  
Macroeconomic Shocks ◽  
Bank Supervision ◽  
Banking Institutions ◽  
The Global Financial Crisis

This article discusses the latest methodological recommendations of the Basel Committee on Banking Supervision developed in response to the effects of the global financial crisis and known as Basel III. The purpose of the study is to explore scientific approaches to justifying bank regulation as a key condition for overcoming the economic crisis and improving financial sustainability. The object of research is Basel III instruments that will be implemented in the bank regulatory policy of Ukraine. The systematic approach and systemic thinking used in the article allow one to substantiate the expediency of Ukrainian banking institutions’ governance based on the risk-oriented approach and to determine the strategy of bank supervision for the next 1-3 years. The study evaluates the results of stress testing of the largest banks in Ukraine. Thus, the results confirm that the banking sector in Ukraine is sufficiently capitalized in the absence of macroeconomic shocks, but in case of a crisis, some of these banks are not protected. Therefore, the article formulates recommendations for improving the regulation of these banks, the phased implementation of Basel III, the application of new principles, standards, tools and methods, corporate governance and risk management in Ukrainian banks.

scholarly journals Impact of Basel Accord on Banking System (Evidence from Islamic Banks of Pakistan)

2015 ◽  
Vol 1 (2) ◽  
pp. 1
Author(s):  
Muhammad Mehtab Azeem ◽  
Akin Marsap ◽  
Cigdem Ozari
Keyword(s):  
Banking System ◽  
Islamic Banking ◽  
Basel Iii ◽  
Islamic Banks ◽  
Basel Accord ◽  
Trade Off ◽  
Financial Anomalies ◽  
Conventional Banks ◽  
The Stability ◽  
The Impact

Banks and bank regulatory authorities are vital players for the stability of economy and financial system in potential way. Basel III and its related to capital’s requirement obligations have been effective useful tool for the banking system. Since, this is tough job for the bankers to maintain the liquidity for hedging the future risk but it also been expensive for bankers to keep the extra capital and become more liquid since this discourage the provision of loans but promote the credit ratings. However, it has become necessary to investigate the impact of Basel III on Islamic banking system and analyze the trade off. The study analyzes empirically on the (Financial) anomalies in term of three factors (i) Financial size (ii) Spread and (iii) Provisions for non performing financing. The study also discusses the impact of Basel III on Islamic banking performance if applicable, in context of trade off and impact on country’s economy. We can ask that Basel III framework is difficult to be consistent for conventional banks; we can also realize that either new regulation will be flexible for Islamic banks under Basel III while Islamic and Conventional banks are totally different. Further, we shall estimate if the Basel III is more or less important in Islamic banks of Pakistan than conventional banks. At the end, we shall see from theoretical framework either the impact of Basel III is important for Islamic banks if and only if Islamic banks adopt to follow Basel III regulations and analyzing the potential influence on conventional banks.

The Power of Delay: Banking System Structure and Implementation of the Basel Accords

2021 ◽  
pp. 1-17
Author(s):  
Christopher Mitchell
Keyword(s):  
Direct Action ◽  
Banking System ◽  
System Structure ◽  
Basel Iii ◽  
International Banking ◽  
Structural Power ◽  
Financial Firms ◽  
National Comparison ◽  
Recent Developments ◽  
Banking Stability

Abstract Recent developments in the international banking system, especially the 2007–9 crisis and subsequent wave of postcrisis regulation, have drawn increasing attention to the structural power of banks and banking systems. States need a functioning financial system to ensure the overall health of their economies, so states must shape policy to protect their financial firms. National financial systems may be dominated either by banks or by capital markets. In states where banks dominate provision of capital, states must shape policy to protect their banks because of their structural importance, independent of any lobbying or other direct action on the part of banks to exercise instrumental power. The entangling of structural and instrumental power means studying differences in structural power requires either careful case-study work or cross-national comparison of responses to a common shock. The implementation of the 2011 Basel III Accords provides just such an opportunity. This article offers a quantitative analysis of a new dataset of implementation of Basel III components in the Basel Committee on Banking Stability member states from 2011 to 2019 and demonstrates the structural power of banks in bank-based systems to accelerate implementation of favorable policies and slow implementation of unfavorable ones.

scholarly journals EFFECT OF THE REGULATORY FRAMEWORK BASEL III ON BENEFITS OF THE BANKING SECTOR IN THE REPUBLIC OF NORTH MACEDONIA

2019 ◽  
Vol 31 (1) ◽  
pp. 81-87
Author(s):  
Zhelao Vytev ◽  
Hazir Gashi
Keyword(s):  
Banking Sector ◽  
Unit Cost ◽  
Banking System ◽  
Regulatory Framework ◽  
Basel Iii ◽  
Financial Indicators ◽  
Unit Costs ◽  
Income Ratio ◽  
Negative Effect ◽  
The Republic

Object of attention in the present work is the profitability and efficiency of banks in the Republic of Northern Macedonia. The subject of the study is focused on the strength and direction of influence of the new Basel III regulatory framework on their final financial results. The purpose of the paper is to reveal the effect of using modern regulatory requirements on the profitability of the country's banking system. The study includes observations on developments in the banking sector for the period 2007-2018. A coefficient of analysis is applied using a system of appropriately selected indicators: cost / income ratio, ROA, asset yield, earnings margin, unit costs, net earnings per share unit cost of staff efficiency factor. An analysis of real empirical data reveals that the implementation of the new regulatory measures does not have a negative effect on the final financial results of the banks, but rather a trend towards improvement of a number of their key financial indicators.

scholarly journals Kingdom of Lesotho

2020 ◽  
Vol 20 (222) ◽  
Author(s):  
◽  
Keyword(s):  
Evaluation Process ◽  
Capital Adequacy ◽  
Assessment Process ◽  
Basel Iii ◽  
Banking Supervision ◽  
Basel Committee ◽  
Disclosure Requirements ◽  
Adequacy Assessment ◽  
Definition Of

This mission, a follow up to the earlier mission from IMF AFRITAC South (AFS) conducted in March 2017 (STX Mr. Bernie Egan), was designed to further help the authorities in the implementation of Basel II and select elements of Basel III. The main objectives of the mission were to help the CBL finalize the Draft Guidelines to banks on Pillar 1; assist in the implementation of Pillar 2, with attention paid to the Supervisory Review and Evaluation Process (SREP) and the banks´ Internal Capital Adequacy Assessment Process (ICAAP); and evaluate current disclosure requirements in view of the recent revision of Pillar 3 by the Basel Committee on Banking Supervision (BCBS). The adoption of select elements of Basel III especially those related to definition of capital was discussed.

EVALUATION OF THE EFFECTIVENESS OF BASEL III REFORMS UNDER COVID-19

2021 ◽  
Vol 2 (5) ◽  
pp. 21-26
Author(s):  
F. Kh. SOZAEVA ◽  
Keyword(s):  
Positive Impact ◽  
Banking System ◽  
International Standards ◽  
Basel Iii ◽  
Work Program ◽  
Banking Systems ◽  
Basel Committee ◽  
Assessment Program ◽  
Banking Policy ◽  
Global Banking

The paper presents an assessment of the effectiveness of the Basel III reforms in the context of COVID-19. The paper analyzes the Post-Crisis Reform Assessment Program (2008–2009) and the two-year work program of the Basel Committee for 2021–2022, which sets out the strategic priorities of its activities in the field of banking policy, supervision and implementation. The conclusion is made about the positive impact of international standards on the security and resilience to the crisis of both individual banking systems and the global banking system.

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