10.26180/5da9328b0b06d
ALEX KAE LUN LEE
ALEX KAE LUN
LEE
Basel III Capital Accord Implementation: Impacts and Implications on Banking System Stability
Monash University
2019
BASEL III
Capital adequacy
Stress test
Banking, Finance and Investment not elsewhere classified
Financial Economics
Financial Institutions (incl. Banking)
2019-10-18 03:33:29
Thesis
https://bridges.monash.edu/articles/thesis/Basel_III_Capital_Accord_Implementation_Impacts_and_Implications_on_Banking_System_Stability/9987950
The 2010 Basel III Capital Accord aims to strengthen banks’ capital adequacy. The Basel Committee on Banking Supervision proposed refined definitions of the three capital tiers, increased the minimum risk-weighted capital requirements, and introduced a capital conservation buffer and a counter-cyclical buffer. These proposals aim to raise the banks’ higher-quality capital and improve the banks’ ability to withstand financial shocks. This study explores the impacts of Basel III’s implementation by assessing: (1) change in bank lending, (2) change in bank solvency from banks’ risk-taking, and (3) change in the banks’ resilience to adverse stress scenarios from higher capital requirements.