TOPIC:The 2007-9 financial crisis revealed somelimitations and potential flawsin the Basel II Banking Regulation. As a response, the new Basel III Capital Accord was proposed by the Basel Committee on 1 June, 2011. Basel III is expected to be fully implemented in 2019.
REQUIRED:Groups are required to write a report, which
Describes the rationale and evolution of Basel regulations over time;
Presents the current set of rules and then illuminates the objectives of the new the requirements introduced by Basel III.
Identifies potential limitations in Basel III regulation and how a new set of rules can further foster financial stability.
It is suggested that part a) should consist of no more than approximately 800-1000 words, or one-third of the report.
The following comprises a list of suggested reading as a base for the report. Groups are expected to search for further academic and practitioner literature to enhance their report:
The Basel Committee – overview – online page.
BIS (2017), Basel III: Finalising post-crisis reforms, Basel Committee on Banking Supervision, Available [Online] https://www.bis.org/bcbs/publ/d424.htm, also available on MyAberdeen
BIS (2017 High-level summary of Basel III reforms, Basel Committee on Banking Supervision, Available [Online] https://www.bis.org/bcbs/publ/d424_hlsummary.htm, also available on MyAberdeen
2018, Financial Times Article, “Regulators apologise for ‘Basel IV’ bank rules delay”, available on MyAberdeen
Ojo, Marianne (2016), Preparing for Basel IV – Why Liquidity Risks Still Present a Challenge to Regulators in Prudential Supervision. Amazon Publications, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1729057or http://dx.doi.org/10.2139/ssrn.1729057also available on MyAberdeen
Ojo, Marianne (2011), Preparing for Basel IV (Whilst Commending Basel III): Why Liquidity Risks Still Present a Challenge to Regulators in Prudential Supervision (Part II)*. Deca Books LLC, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1732304 or http://dx.doi.org/10.2139/ssrn.1732304also available on MyAberdeen