Basel III as a regulatory framework for risk management
DOI:
https://doi.org/10.5937/bizinfo2402075PKeywords:
Basel III, National Bank of Serbia (NBS), risk management, capital requirements, liquidityAbstract
The stability of the economic system, which directly depends on the reliability of the country's financial sector, is crucial for growth and development. Therefore, effective risk management is of paramount importance for both banks and other financial institutions. In a turbulent and unpredictable business environment, banks are constantly exposed to risks. For this reason, it is necessary to continuously improve control systems. Basel III refers to a set of global regulatory standards for banks, introduced in 2010 by the Basel Committee on Banking Supervision (BCBS). The aim of the defined standards is to ensure the resilience and stability of banks and prevent financial shocks. On the other hand, this new regulatory framework imposes stricter criteria on commercial banks, which affects credit policy. In addition to a theoretical overview of the new regulatory framework, the paper analyzes the indicators of capital adequacy and the impact of changes in the macroeconomic environment on the exposure of domestic banks to liquidity risk.
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