Home Part 2 The influence of the new Basel regulation rules on the Slovak banking sector

 

The influence of the new Basel regulation rules on the Slovak banking sector

 

 

Emília Zimková, Jana Tašková

University of Matej Bel, Faculty of Economics, Department of Finance and Accounting, Tajovského 10, Banská Bystrica, 974 01, Slovakia, tel. 00421 48 446 6322, e-mail addresses: This e-mail address is being protected from spambots. You need JavaScript enabled to view it "> This e-mail address is being protected from spambots. You need JavaScript enabled to view it , This e-mail address is being protected from spambots. You need JavaScript enabled to view it "> This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

 

Abstract

The aim of the paper is to quantify an impact of the new Basel regulation rules which are known as Basel III on the Slovak banking sector. We present methodology provided by the Bank for international settlement in its monitoring workbook and as to database the set of central bank statements and reports provided upon request have been used. Based on our calculations we discovered three main impacts of the Basel III on the Slovak banking sector: i) the volume and quality of the capital meet requirements of the new Basel regulation already. There are no hybrid instruments in Tier 1 Capital. Movements in volumes of expected risk-weighted assets in the Slovak banking sector won´t be relevant particularly due to absence of toxic assets associated with financial markets; ii) calculated indicator of leverage is more than two times higher as the requested one; iii) the liquidity coverage ratio and the net stable funding ratio are even today in the Slovak banking sector highly above standards and they do not require any transitional period. The direction of the development of the world banking is returning to the classical trading model and the parameters are set for this. The Slovak banking sector did not manage to leave this classical model and this will help it now and also in the future.

Key words: Regulation, Banks, Basel III, Capital, Leverage Ratio, Liquidity

JEL Classification: G01, G18, G21, G31

 

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