Document Type
Case Study
Case Series
Basel III
JEL Codes
G01, G28
Abstract
In the wake of the financial crisis of 2007-09, the Basel Committee on Banking Supervision (BCBS) faced the critical task of diagnosing what went wrong and then updating regulatory standards aimed at preventing it from occurring again. In seeking to strengthen the microprudential regulation associated with the earlier Basel Accords while also adding a macroprudential overlay, Basel III consists of proposals in three main areas intended to address 1) capital reform, 2) liquidity standards, and 3) systemic risk and interconnectedness. This case considers the causes of the 2007-09 financial crisis and what they suggest about weaknesses in the Basel regime as it then existed. It then summarizes the provisions of Basel III to allow for an evaluation of whether it was an effective response to the causes of the financial crisis.
Recommended Citation
McNamara, Christian M.; Wedow, Michael; and Metrick, Andrew
(2019)
"Basel III B: Basel III Overview,"
Journal of Financial Crises: Vol. 1
:
Iss. 4, 59-69.
Available at:
https://elischolar.library.yale.edu/journal-of-financial-crises/vol1/iss4/4
Date Revised
2020-01-01
Included in
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