Abstract

What to Expect from Basel III?

Highlights

  • I would like to dedicate the third edition of European Financial and Accounting Journal to contemplate what could be anticipated from Basel III

  • The second form is countercyclical capital buffer, which should reduce criticized weakness of the current Basel II, namely its rather pro-cyclical nature. The application of this buffer will be in competence of national regulators, who shall be able to increase the capital ratio by 2.5 percent if the volume of credits in economy grows faster than GDP

  • Other hand it should be noted that the planned capital increase cannot ensure the survival of all banks during the another financial crisis because the decline in assets values may be higher than the banks would be capable to absorb even from increased capital

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Summary

Introduction

I would like to dedicate the third edition of European Financial and Accounting Journal to contemplate what could be anticipated from Basel III. What changes will the enforcement of Basel III bring to the banks and what might be expected from them?

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Conclusion
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