THE CURRENT STAGE OF BASEL III APPLICATION AND ITS CONSEQUENCE ON FINANCIAL STABILITY: EVIDENCE FROM KOSOVO
THE CURRENT STAGE OF BASEL III APPLICATION AND ITS CONSEQUENCE ON FINANCIAL STABILITY: EVIDENCE FROM KOSOVO
Author(s): Muhamet J. SpahiuSubject(s): Economy, Law, Constitution, Jurisprudence, National Economy, Business Economy / Management, Micro-Economics, International Law, Financial Markets, Public Finances, Socio-Economic Research, EU-Legislation
Published by: Institute for Research and European Studies - Bitola
Keywords: Banking System; Financial Regulation; Capital; Risk Assessment
Summary/Abstract: The study aims to explore the divergences around the implementation of the Basel III agreement, since this agreement is considered the core of the international regulatory response to the financial crisis, setting the strictest criteria for capital structure and risk assessment. This paper explains the current level of legislation that applies in Kosovo, as well as possible divergences with the criteria set by Basel III. It is argued that the national authority, explicitly the CBK, to decide on the implementation of Basel III, had to agree on three aspects and potentially conflicting between them: the stability of the banking sector, competition, and care for economic growth. Finally, the study concluded that Kosovo is implementing Basel III regulations with greater ease and attention, contributing to banking sector stability, competitiveness, and economic growth.
Journal: Journal of Liberty and International Affairs
- Issue Year: 8/2022
- Issue No: 1
- Page Range: 153-169
- Page Count: 17
- Language: English
