A critical analysis of the implementation of Basel III to Basel IV (Essay Sample)

Instructions:

Coursework Brief: The Basel Committee on Banking Supervision (BCBS) has published its new rules, which will come into effect starting this year, that will improve upon Basel III. These rules have been dubbed Basel IV colloquially by bankers and have been discussed extensively in the last couple of years. This coursework is focused on a critical analysis of the implementation of Basel III and of the changes proposed by Basel IV. It requires that you evaluate the full Basel III agreement, the finalised proposal for Basel IV, the evaluation from October 2018 of the implementation status of Basel III, and the evaluation of the regulatory status in a pair of territories of your choice (see question 2). Use the Basel III agreement, the BCBS consulting documents, citable sources from journals and companies, official publications (see http://bit.ly/2ksdoNM), and your knowledge from the module to answer each of the following questions. The answers should be in your own words in a way non-experts can understand, but everything should be properly cited and discussed. Marks will be deducted for just quoting verbatim from any citable source or by discussing concepts with no adequate citable source. You must prove you are able to create an argument supported by literature, contrasting multiple literary views when necessary. As this is a 3000-word project, not considering appendices, the answers should average at most 1000 words and the answer to each question is worth 1/3 of the total marks (100). See the rubric for a detailed evaluation of each score.

source..

Content:

A critical analysis of the implementation of
Basel III to Basel IV
Introduction
This investigation delves into the changes made by the Basel Committee on Bank Supervision (BCBS) concerning modifications to Basel III that are in the new Basel IV accords (Amorello, 2016). The purpose of the Basel Accords represents a process that started in the mid-1980s as a forum for banking cooperation regarding bank supervision matters (Kou et al, 2013). One of the shortcomings is they are voluntary as the adoption of the specifics are left to the individual central banks or banking supervision authorities in each country (Kou et al, 2013). Basel IV standardises the manner banks go about the calculation of risk-based capital ratios (which includes leverage ratios), which will this make it easier for regulators to conduct a comparison of these ratios across the banking sector (Davies, 2017). The negative aspect is that these rule changes (that take effect in 2022) will mean banks will need to significantly increase their set aside for regulatory capital (Imeson, 2018).
1 15th progress report on the adoption of the Basel regulatory framework
An example of the difficulties in adopting the Base Accords is found in an article by Nwoji (2017, p. 1) who stated “Banks in Africa, Nigeria banks inclusive, will from January 2019 be expected to adopt the Basel IV regulation, which is expected to place them at par with other global operators.” He adds the issue stems from the fact most banks in Africa “… are operating under Basel 111 regulatory model while others in less developed parts of the region are still grappling with Basel 11 model” (Nwoji, 2017, p. 1). The fact that the New Basel IV represents a series of changes to Basel III means many lesser developed countries are still behind in adopting prior Basel changes.

...

Get the Whole Paper!

Not exactly what you need?

Do you need a custom essay? Order right now:

Order

A critical analysis of the implementation of Basel III to Basel IV (Essay Sample)

Other Topics: