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| The Impact and Countermeasures of the Finalisation of Basel III |
| YANG Kaisheng, LIU Ruixia, FENG Qian
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| Industrial and Commercial Bank of China |
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Abstract The finalisation of Basel III aims to improve the prudence, consistency, comparability and transparency of the measurement of risk weighted assets in banking sector.It has made some improvement on the measurement methods of credit risk, market risk, operational risk and credit valuation adjustment, also further clearly put forward the requirements of the capital output floor, the leverage ratio buffer and so on.The results of the cumulative quantitative impact study by BCBS show that the new regulatory rules have different effects on each bank, some banks being about to face capital shortfalls.The overall impact of the revision of the regulatory rules on the capital adequacy of China's banking sector may be not significant, however, considering the heterogeneity of each bank, the extent of each bank being impacted is to be different.Therefore, China's banking sector should adhere to strict and scientific capital management, rationally determine the transitional arrangement,thus avoid a significant impact on banking risk control capacity, macroeconomic and financial stability.
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Received: 08 January 2018
Published: 01 January 1900
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