Basel III and its Impact on the Banking Sector in Russia

Anna Ttuyan

Master's thesis

Abstract:

Crisis phenomena in the world banking system clearly indicated the problem of effective regulation of banking activities in order to minimize banking risks, avoid further stress such as that of the financial and economic crisis of 2007-2008. Today, an urgent issue for the banking sector is the application of the international standards of Basel III. On the basis of information from open sources such as regulatory body reports, reports by the banks and available previous research, this work analyzes the impact of Basel III standards on the Russian banking sector. The very process of implementing the main provisions of the Basel III agreement in Russia is explained, and positive and negative trends in their implementation are also reflected. On one hand, some general indicators are examined for the whole banking sector. On the other hand, a closer look has been taken on the more detailed performance indicators of domestic systematically important banks of Russian Federation. This work later concludes that the domestic banking sector has gained more stability and is performing well in the application of Basel III rules. Furthermore, the work proposes ways to achieve better results of regulatory indicators in order for the banking sector to be able to meet the requirements by 1 January 2019 without having a continuously shrinking banking sector.

Abstract:

Crisis phenomena in the world banking system clearly indicated the problem of effective regulation of banking activities in order to minimize banking risks, avoid further stress such as that of the financial and economic crisis of 2007-2008. Today, an urgent issue for the banking sector is the application of the international standards of Basel III. On the basis of information from open sources such as regulatory body reports, reports by the banks and available previous research, this work analyzes the impact of Basel III standards on the Russian banking sector. The very process of implementing the main provisions of the Basel III agreement in Russia is explained, and positive and negative trends in their implementation are also reflected. On one hand, some general indicators are examined for the whole banking sector. On the other hand, a closer look has been taken on the more detailed performance indicators of domestic systematically important banks of Russian Federation. This work later concludes that the domestic banking sector has gained more stability and is performing well in the application of Basel III rules. Furthermore, the work proposes ways to achieve better results of regulatory indicators in order for the banking sector to be able to meet the requirements by 1 January 2019 without having a continuously shrinking banking sector.

Keywords

Banking sector in Russia, Russian Federation, Systematically important banks of Russian Federation, Basel III, banking sector, Russian banking sector, Russia

Keywords

Basel III, Banking sector in Russia, Systematically important banks of Russian Federation, banking sector, Russian banking sector, Russia, Russian Federation

Language used: English

Date on which the thesis was submitted / produced: 29. 11. 2017

Thesis defence

• Date of defence: 13. 6. 2018
• Supervisor: Jiří Witzany
• Reader: Karel Janda

Vysoká škola ekonomická v Praze

Master programme:
Finance and Accounting