THE IMPACT OF NEW REGULATION ON FOUR EUROPEAN BANKING SYSTEMS. A BASEL III APPROACH
One of the solutions designed to rebuild the banking system is the reconfiguration of the regulatory framework. Still active, the episodes of liquidity shortage and bank failure ask for solid measures in order to increase the solidity of individual institutions, to protect the financial stability...
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| Format: | Article |
| Language: | English |
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Editura Univeristatii "Stefan cel Mare" din Suceava
2013-12-01
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| Series: | USV Annals of Economics and Public Administration |
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| Online Access: | http://annals.seap.usv.ro/index.php/annals/article/view/507/596 |
| Summary: | One of the solutions designed to rebuild the banking system is the reconfiguration of the regulatory framework.
Still active, the episodes of liquidity shortage and bank failure ask for solid measures in order to increase the solidity of
individual institutions, to protect the financial stability of the banking systems and to maintain confidence on the
markets. The aim of this paper is to analyze the situation of four European banking systems (Czech Republic, Poland,
Romania and Croatia) in terms of Basel III standards. Structured on three parts, the study points out the real concerns
regarding Basel III effectiveness; analyzes the evolutions of capital, leverage and liquidity indicators and highlights the
future possible scenarios/actions for aligning to the new regulation. To conclude, we determine the white and the black
spots of the selected banking systems related to Basel III implementation. The results show good levels of capital in
Poland, Czech Republic, Croatia and Romania, and some liquidity issues in Poland. The Czech and the Croatian
banking systems are the best prepared for shocks. |
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| ISSN: | 2285-3332 2344-3847 |