The Challenges of Basel III for the Czech Banking Sector

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216275%3A25410%2F12%3A39892865" target="_blank" >RIV/00216275:25410/12:39892865 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
The Challenges of Basel III for the Czech Banking Sector
Original language description
As the global crisis has shown, a revision of Basel II regulation was needed to reflect the current trends in the world financial markets. New regulatory Basel III proposals may not hit banks in the Czech Republic significantly because these banks reporthigh capital ratios and liquidity buffers already. However, some negative impacts might be expected. In this paper we discuss the Basel III proposal and its expected direct and indirect impacts on the Czech banking sector. The most significant direct impacts encompass newly-introduced liquidity requirements, higher capital requirements for counterparty risk and higher capital requirements for trade finance products. The indirect impacts include lower banks' profitability due to expected lower growth ofthe Czech economy (resulted from Basel III implementation in Western Europe) and uncertain reaction on regulatory proposals of foreign parent banks that own a vast majority of banks operating in the Czech Republic.
Czech name
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Czech description
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Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2012
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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