In 2010, the Basel Committee on Banking Supervision (BCBS) initiated a raft of reforms to the banking regulation, dubbed Basel III, introducing new liquidity and leverage ratios and strengthening the banks’ capital requirements ratio with an aim of improving their ability to absorb shocks whilst refining risk management approaches and tightening the banks’ disclosures requirements substantially. This article examines key reforms that were brought by Basel III vis-à-vis the propositions of Basel I and II in reducing bank failures and risk levels using emerging markets (e.g. Africa) as a case study.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Bank regulation in the advent of Basel I and II
- The main reforms under Basel III accord
- Applicability of Basel III in developing economies (A Case study of Africa)
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This article examines the key reforms introduced by Basel III, comparing them to the propositions of Basel I and II in reducing bank failures and risk levels. It uses emerging markets, specifically Africa, as a case study. The article analyzes the impact of these reforms on the banking sector in developing economies and the challenges of implementing them in these contexts.
- The evolution of bank regulation from Basel I to Basel III
- The key reforms introduced by Basel III and their intended impact
- The challenges of implementing Basel III in developing economies
- A case study of Africa and its experience with Basel III reforms
- The potential benefits and drawbacks of Basel III for developing economies
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter provides an overview of the historical context of bank regulation, outlining the development of the Basel Accords from Basel I to Basel III. It highlights the motivation behind these reforms, which stemmed from concerns about systemic risk and the need to strengthen the resilience of the banking sector.
- Bank regulation in the advent of Basel I and II: This chapter delves into the specific regulations of Basel I and II, examining their key features, strengths, and weaknesses. It discusses how these frameworks aimed to harmonize capital adequacy standards across different economies and how they addressed concerns about risk management within the banking sector.
- The main reforms under Basel III accord: This chapter focuses on the key reforms introduced by Basel III. It analyzes the specific changes in capital requirements, liquidity ratios, and leverage ratios that were designed to strengthen the financial system and minimize the likelihood of future financial crises.
Schlüsselwörter (Keywords)
The key terms and concepts explored in this text include Basel III, bank regulation, developing economies, systemic risk, capital adequacy, liquidity ratios, leverage ratios, risk management, emerging markets, Africa, and financial stability.
- Quote paper
- Richard Ondimu (Author), 2017, Developing Economies and Basel III. Reforms brought by Basel III to the International Regulatory Framework set in Basel I and II., Munich, GRIN Verlag, https://www.grin.com/document/370424
