Role of the Basel Accords in preserving financial stability

International convergence and standardisation of general banking terms and conditions are primarily associated with the Basel Committee’s activities, which resulted in the adoption of the Capital Adequacy Accords (Basel I, Basel II and Basel III) for the purpose of limiting potentially growing risks in the international banking operations by means of appropriate capitalisation. The purpose of this paper is to point out the importance of the Basel Accords and/or their impact on banking operations and financial stability based on available scientific literature, international standards, the EU acquis, national legislation and other statistical data. Starting from a defined subject matter and a set goal, the paper will first analyse the core principles of Basel I and the transition to the new Basel II Accord. After identifying the shortcomings of Basel II, which were manifested during the global financial crisis, the attention will be focused on the development and implementation of Basel III. Taking into consideration the preservation of financial stability, the National Bank of Serbia pays special attention to improving and harmonising the legislation governing banking operations in accordance with international standards and the EU acquis, while observing distinctive features of the local legal framework and the national market.