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The New Basel Iii Regulations On Liquidity And Its Possible Effects

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  • Adina APATACHIOAE

    (Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, adinaapatachioae@yahoo.com, Iasi, Romania)

Abstract

The global financial crisis determined a series of proposals to reform the regulatory framework that govern the banking sector in order to strengthen its resilience in poor circumstances. For this purpose, the provisions of Basel III regulatory package is reflected on the issues and risks that have caused the financial crisis, including those related to liquidity. The aim of this article is to present the new Basel III on liquidity rules, their implementation need to ensure financial stability and their possible effects. The objectives of Basel III in terms of liquidity are formulated to determine the increase in liquid assets and the reduction of the short-term funding. However, all measures taken through the new regulations can reduce the risks, but can not exclude the emergence of vulnerabilities affecting the banking system in the future. We believe that the new regulations have caused a series of reforms to the banking system, but the compliance degree of their implementation and the effects of new laws differs depending on the degree of development of each country, the main implications are differentiated by monetary transmission channels.

Suggested Citation

  • Adina APATACHIOAE, 2013. "The New Basel Iii Regulations On Liquidity And Its Possible Effects," Journal of Public Administration, Finance and Law, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 4(4), pages 136-147, December.
    • Handle: RePEc:aic:jopafl:y:2013:v:4:p:136-147
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    References listed on IDEAS

    as
    1. Vasile DEDU & Dan Costin NIȚESCU, 2012. "Basel III – Between Global Thinking and Local Acting," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(6(571)), pages 5-12, June.
    2. Anastasia Gromova-Schneider & Caroline Niziolek, 2011. "The Road to Basel III – Quantitative Impact Study, the Basel III Framework and Implementation in the EU," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 21, pages 58-61.
    3. Adrian Blundell-Wignall & Paul Atkinson, 2010. "Thinking beyond Basel III: Necessary Solutions for Capital and Liquidity," OECD Journal: Financial Market Trends, OECD Publishing, vol. 2010(1), pages 9-33.
    4. repec:onb:oenbwp:y:2011:i:21:b:1 is not listed on IDEAS
    5. repec:hum:wpaper:sfb649dp2011-041 is not listed on IDEAS
    6. Tobias Adrian & Hyun Song Shin, 2008. "Liquidity and financial cycles," BIS Working Papers 256, Bank for International Settlements.
    7. Bindseil, Ulrich & Lamoot, Jeroen, 2011. "The Basel III framework for liquidity standards and monetary policy implementation," SFB 649 Discussion Papers 2011-041, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
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    Cited by:

    1. Adina APÃTÃCHIOAE, 2014. "The Deposits Of Romanian Credit Institutions In Times Of Crisis," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 13, pages 103-127, June.

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