المستخلص: |
The purpose of this paper is to outline the new requirements involved in Basel III Accord and highlights the impacts of implementation of the new requirements on the Banking sector. Basel III was introduced in 2010 after the world has suffered from the worst global financial crisis since the Great depression of the 1930s, credit risk management and the failures in the regulatory systems have been accused as the main reason for that crisis. Basel III was organized in 3 pillars: minimum capital requirement, supervisor review process and market discipline. The major goals are to increase transparency by requiring regular reporting using standardized accounting procedures and put limits on leverage ratio to ensure that credit institutions are holding sufficient assets and able to meet their contractual obligations, so improving risk management and governance as well as strengthen bank’s transparency and disclosures.
|