BASEL III - ISSUES AND IMPLICATIONS FOR THE ROMANIAN BANKING SYSTEM
Daniela Dandara
Abstract
Daniela Dandara
Abstract
Basel III is the result of the continuous effort made by the Basel Committee on Banking Supervision to enhance the banking regulatory framework. It seeks to improve the banking sector's ability to deal with financial and economic stress, improve risk management and strengthen the banks' transparency. The purpose of this paper is to identify possible outcomes of implementing Basel III on the Romanian banking system, given the current position of the key financial ratios. Although the impact is considered to be limited, financial institutions will need to adapt their financial strategies and business model to the new environment.
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Basel III is the result of the continuous effort made by the Basel Committee on Banking Supervision to enhance the banking regulatory framework. It seeks to improve the banking sector's ability to deal with financial and economic stress, improve risk management and strengthen the banks' transparency. The purpose of this paper is to identify possible outcomes of implementing Basel III on the Romanian banking system, given the current position of the key financial ratios. Although the impact is considered to be limited, financial institutions will need to adapt their financial strategies and business model to the new environment.
Key concepts: Basel III, Basel I, Risk-weighted asset, Business, Basel II, Transparency (behavior), Position (finance), Operational risk