Impact of Basel accords on efficiency, profitability and risks in banking management
Implementation of new Basel Accords is getting the attention of various academic and business circles. More strict financial regulations aim for higher liquidity and solvency, and risk reduction - especially credit and operational one. By investing in less risky activities, the possibility of achiev...
| Published in: | Anali Ekonomskog fakulteta u Subotici |
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| Main Author: | |
| Format: | Article |
| Language: | English |
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University of Novi Sad - Faculty of Economics, Subotica
2014-01-01
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| Subjects: | |
| Online Access: | https://scindeks-clanci.ceon.rs/data/pdf/0350-2120/2014/0350-21201432305B.pdf |
| Summary: | Implementation of new Basel Accords is getting the attention of various academic and business circles. More strict financial regulations aim for higher liquidity and solvency, and risk reduction - especially credit and operational one. By investing in less risky activities, the possibility of achieving above-average rates of profit is greatly reduced, but lack of bigger profits is compensated with lower risks and greater degree of security. In this article, we analyzed implementation of Basel Accords in banking operations in Serbia with aim to answer whether the safer profit is better or not. New regulations change banking operations and introduce new competitive strategies. Tests were made with Serbian banks sample to examine the correlation between profits and risks. We examined the behavior of banks between 2006 and 2012, before and after the introduction of the expanded Basel Accords. Finally, we have made a conclusion on the significance and impact of the implementation of Basel accords on banking sector in Serbia. |
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| ISSN: | 0350-2120 2683-4162 |