Introduction of Basel III: Opportunities and Challenges

  • Violeta Madzova

Abstract

Basel III is an opportunity as well as a challenge for the banks. It was developed from the existing Basel II framework, and the most significant differences for banks are the introduction of liquidity and leverage ratios, and enhanced minimum capital requirements. An effective implementation of Basel III need to demonstrate to regulators, customers, and shareholders that the bank are recovering well from the global banking crisis of 2008 and provide a solid foundation for the next developments in the banking sector. The complexity and demands of Basel III and the commercial demands of the banking world will require a flexible Basel III management solution that delivers speed, accuracy, and performance to deliver competitive advantage. And those banks that implement the optimal solution will not only have an ideal platform for delivering Basel III, they will also have a solid platform for their future commercial development. Although implementing Basel III will only be an evolutionary step for many organizations, the impact of Basel III on banks and the banking sector should not be underestimated, because it will drive significant challenges that need to be understood and addressed.

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References

Pierre-Etienne Chabanel - White Paper “Implementing Basel III : Challenges, Options & Opportunities- Moody’s Analytics , September 2011

Shearman and Sterling -“ The New Basel III Framework: Implications for Banking Organizations” FINANCIAL INSTITUTIONS ADVISORY & FINANCIAL REGULATORY, March 2011

D&B Special Report - The Business Impact of ‘Basel III’, October 2010

Basel III’ Issues and Implications – KPMG , January 2011

НБРМ: Извештај за банкарскиот систем и банкарската супервизија во Република Македонија во 2010 година, април 2011

Strengthening the Resilience of the Banking Sector (Basel Committee 189)

Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems (Basel Committee No 189).

Published
2013-05-20
How to Cite
Madzova, V. (2013). Introduction of Basel III: Opportunities and Challenges. Yearbook - Faculty of Economics, 3(1), pp.73-84. Retrieved from https://js.ugd.edu.mk/index.php/YFE/article/view/502