The Challenges of Basel III for Romanian Banking System

Basel III represents a fundamental review of the regulatory and supervision framework of the banking industry in the future, the aim being to strengthen the stability of the financial system. The purpose of this paper is to analyze the impact of Basel III introduction upon the banking system at Euro...

Full description

Saved in:
Bibliographic Details
Published in:Theoretical and applied economics 2011-12, Vol.XVIII (12), p.59-70
Main Author: Anca Elena NUCU
Format: Article
Language:English
Subjects:
banking system
Basel III
financial stability
Romania
systemic risk
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Basel III represents a fundamental review of the regulatory and supervision framework of the banking industry in the future, the aim being to strengthen the stability of the financial system. The purpose of this paper is to analyze the impact of Basel III introduction upon the banking system at European level, respectively, upon the Romanian banking system. If at European level it is estimated a substantial deficit in capital and liquidity, with major impact on profitability indicators, the impact of Basel III upon banking system in Romania is considered to be limited. The measures which credit institutions could take to mitigate the impact of alignment with the new standards are business model adjustment and balance sheet restructuring.
ISSN:1841-8678
1844-0029