Basel III refers to the latest capital and liquidity standards
prescribed by the Bank for International Settlements (BIS). Bangladesh
has entered into the Basel III regime effective from January 01, 2015.
Bangladesh Bank (BB) amended its capital standard which was based on
Basel II and circulated new regulatory capital and liquidity guidelines
in line with Basel III of BIS. The new capital and liquidity standards
have great implications for banks. Let us focus the guideline of the BB
and identify the challenges ahead for the banks of Bangladesh.
The discussion may be started from original Basel III accord of the BIS, which is the base of the BB's guideline. Basel III was introduced in 2010 with the intention of gradual implementation starting from January 01, 2013 and full implementation starting from January 01, 2019. Basel II guideline, the previous version of capital standard, was felt inadequate to maintain financial stability during global financial crisis started in 2007. The financial instability took a heavy toll and led to economic crisis in various countries. Basel III guideline has been formulated to improve shock resilience capacity of the banks to prevent recurrence of such financial and economic crisis.
Read more at Click here / www.trade4x.net
The discussion may be started from original Basel III accord of the BIS, which is the base of the BB's guideline. Basel III was introduced in 2010 with the intention of gradual implementation starting from January 01, 2013 and full implementation starting from January 01, 2019. Basel II guideline, the previous version of capital standard, was felt inadequate to maintain financial stability during global financial crisis started in 2007. The financial instability took a heavy toll and led to economic crisis in various countries. Basel III guideline has been formulated to improve shock resilience capacity of the banks to prevent recurrence of such financial and economic crisis.
Read more at Click here / www.trade4x.net
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