1 / 10

Basel III

Basel III. Zozulya Viktoria.

zia
Download Presentation

Basel III

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Basel III Zozulya Viktoria

  2. Basel 3 isthethirdoftheBaselaccords, whichstrengthens bank capitalrequirementsandintroducesnewregulatoryrequirements on bank liquidityand bank leverage. Themainobjectives are to enhancethe stability ofthefinancialsystem, in order to reducethe probability offuturecrises, improve risk management andgovernance , strengthenbanks' transparency. What is the Basel III?

  3. In 1988 the Basel Committee on Banking Supervision published a set of minimal capital requirements for banks, known as the Basel 1 accord, which was enforced by law in the G-10 countries in 1992. • Basel 1 primarily focused on credit risk and bankscapital needs among their liabilities in order to deal with losses. Assetsofbankswereclassified in fivecategoriesdepending on theircredit risk, or risk of default, andassignedcorresponding risk weights. Thegeneral rule wasthatbankswererequired to fundthemselveswithcapitalequal to 8% oftheir risk-weightedassets. From Basel I to Basel III

  4. Basel 2, thesecond set ofaccordspublished in June 2004, aimedatwideningthescopeoftheriskscovered, andatimprovingthemethodologyforcalculatingthe risk weights. • In 2010, theBaselCommittee on BankingSupervisionpublishedtheBasel 3 agreement, anupdated set ofinternationalrules on capitalrequirementsforbanks. Basel III proposes many newcapital, leverageandliquiditystandards to strengthentheregulation, supervisionand riskmanagement ofthebankingsector. Thecapitalstandardsandnewcapitalbufferswillrequirebanks to hold more capitalandhigherqualityofcapitalthanundercurrentBasel II rules. Thenewleverage ratio introduces a non-risk basedmeasureto supplementthe risk-based minimum capitalrequirements. The new liquidity ratios ensure that adequates funding ismaintained in case ofcrisis. From Basel I to Basel III

  5. From Basel I to Basel III

  6. From Basel I to Basel III

  7. The key elements of new regulation

  8. Key elements

  9. The banking crisis of 2007 / 2008 had enormous consequences for society in terms of wealth destruction, rising unemployment and increases in levels of public debt. It also showed that bank capital was, in general, far too low. In the context of almost continued decline of bank capital over the past century, empirical evidence, academic studies and several leading figures conclude that bank capital needs to be much higher. Why we need Basel III

  10. The EndThank you for your attention

More Related