A Research Proposal on the Impact of Basel III on the Russian Banking Industry

Abstract

The aftermath of the global economic crisis provided an opportunity for the financial sector of global economies to restructure the approach of dealing with risk and regulation in the financial sectors. The Basel Committee of Banking Supervision (BCBS) however embarked on a program of substantially revising its existing capital adequacy guidelines. The resultant capital adequacy framework termed ‘Basel III,’ was thus formed and the G20 endorsed the new Basel III capital and liquidity requirements at their November 2010 Summit in Seoul.

The proposed research is to assess the impact of the Basel III accord on the Russian Banking Industry and efforts that has been made so far and how prepared the industry is in the light of a possible Basel IV accord. The focus of the study will be on the Central Bank of Russia which is the key regulator of the industry and albeit the country’s suspension from the G8 after its annexation of Crimea in March of 2014.

The proposed research will provide a much-needed window on the initial adaptation of Basel III and the performance of the banks in Russia in lieu of a possible Basel IV accord.

Keywords: Banking, Basel III, Risk, Global Economic crisis, Russia

JEL Classification: E00, E02, G28