Basel III finalisation: completing the jigsaw

Author: Bozena Gulija | Published: 8 Aug 2019

Regulation and risk management expert Bozena Gulija assesses the Basel Committee’s progress so far and highlights key challenges ahead

The period following the financial crisis has been characterised by an unprecedented dynamic in global banking regulation. The Basel Committee's (Basel Committee on Banking Supervision, BCBS) position has been that the three-pillar Basel II architecture provides a sound foundation for the capital regulatory system, but needs to be upgraded. After the immediate response to the crisis in 2009 with Basel II.5, a broad review was carried out and therefore Basel III is best regarded as a series of regulatory reforms. Initially, Basel III strengthened the quality of capital, introduced the leverage ratio and, for the first time, standardised liquidity ratios....