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Did Basel III reduce bank spillovers in South Africa

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  • Serena Merrino
  • Ilias Chondrogiannis

Abstract

We examine the effect of post-2010 banking regulation in South Africa on financial stability, macroeconomic variables and bank performance. We focus on risk spillovers and increased network and tail connectedness between banks, using a sample of nine listed South African banks in 20082023. The implementation of Basel III regulation, particularly capital adequacy ratios, has reduced connectedness-related risks but there is weak evidence of an effect of regulation on bank performance.

Suggested Citation

  • Serena Merrino & Ilias Chondrogiannis, 2024. "Did Basel III reduce bank spillovers in South Africa," Working Papers 11060, South African Reserve Bank.
    • Handle: RePEc:rbz:wpaper:11060
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    References listed on IDEAS

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