Impact of Basel III Agreement on the European Union's Banking Sector

Abstract

The aim of this article is to analyze the impact of the Basel III agreement on the European Union's banking sector. This article is divided into three parts. The first part is introductory, which describes the basics of the mortgage crisis in the USA, the causes of its beginning and its development into the global financial crisis. The second part deals with the reaction of the G20 countries to the financial crisis itself in the form of the implementation of the Basel III Agreement and the impact of this agreement on the European banking sector. This chapter then deals with quantitative cash release and negative interest rates, as it is a consequence of the Basel III Agreement. The Basel III Agreement had a significant impact on the monetary policy of the European Central Bank and its impact on business in the countries of the European Union. We deal with this issue at the end of this section. In the third part of this article, in its conclusion, we summarized the key findings of this article and defined the impact of the Basel III Agreement on the European banking sector.