Description and analyses of the implementation of Basel Accord III in the EU, and its impacts on Finland
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School of Business |
Bachelor's thesis
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Author
Date
2017
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Mcode
Degree programme
(Mikkeli) Bachelor’s Program in International Business
Language
en
Pages
46
Series
Abstract
Objectives The main objectives of this study are to adequately describe the environment in which the Basel Accord banking regulations are created and subsequently implemented, and explain the reasons to why there are differences in the first place. Also, to analyze and compare the implementation of the Basel III in the EU (and specifically in Finland, being a member State), and understand some of the main implications that follow. Summary The rules set by the Basel Committee of Banking Supervision (BCBS) lack official legal legitimacy and enforceability, hence the signatories implement the regulation differently. This leads to significant variations in the rules that apply to banks and other financial actors in different jurisdictions, for example the EU and the US. These inconsistencies have further implications even inside the EU, due to the regulations being partly implemented in directives, which leave member states room for discretion. Conclusions Implementation differences remain significant even with Basel III. The debt crisis influenced EU’s composition of the CRD IV, which started a new era of non-compliance for the EU in terms of banking regulation. Finland has coped well with new requirements, but the large and integrated banking sector and heavy reliance on exports and trade partners have amplified the impact on the Finnish economy.Description
Thesis advisor
Ghoshal, AnimeshKeywords
banking regulation, Basel III, CRD IV, implementation differences
