How Have Basel Accords Influenced Banking Stability and Profitability?

This paper analyses the evolution of the Basel Accords, from Basel I to the reform package known as Basel IV, with the aim of assessing their impact on the prudential regulatory framework of the banking sector. The study is motivated by the need to strengthen financial stability in the context of recurring economic crises and the debate on the relationship between stability and bank profitability. The methodology used is qualitative and based on documentary and comparative analysis of official documents issued by the Basel Committee on Banking Supervision, supplemented by relevant literature. The results highlight that each stage of Basel regulation reflects the lessons learned from financial crises and aims to correct previously identified vulnerabilities. Although the tightening of capital and liquidity requirements has put pressure on traditional profitability indicators, such as return on equity and return on assets, these measures have contributed to increasing the resilience of the banking system. The findings point to a clear transition towards a banking model characterized by more moderate but more stable and sustainable profitability in the long term.