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Systemic level impacts of Basel III on Hungary and Europe

Author

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  • Anikó Szombati

    () (Magyar Nemzeti Bank (central bank of Hungary))

Abstract

Based on data available in the autumn of 2010, this paper describes the impacts which the most significant elements of the Basel III standards – that is, the new capital and liquidity requirements - are expected to have on the domestic and European banking system. Overall, we do not expect the new regulations to exert any significant direct effects on the Hungarian banking system. Nevertheless, some decline in GDP growth at the national level cannot be ruled out, to a lesser extent due to movements in the European money and capital markets, and to a greater extent due to impacts directly through parent banks. It is important to stress that calculations used as the basis for the industry and regulatory conclusions presented in this paper are relevant to a specific date and rely on different regulatory packages. Therefore, a repeated review of the regulatory package will have to be carried out prior to its implementation.

Suggested Citation

  • Anikó Szombati, 2010. "Systemic level impacts of Basel III on Hungary and Europe," MNB Bulletin (discontinued), Magyar Nemzeti Bank (Central Bank of Hungary), vol. 5(4), pages 33-42, December.
  • Handle: RePEc:mnb:bullet:v:5:y:2010:i:4:p:33-42
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    File URL: http://www.mnb.hu/letoltes/szombati-en.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Basel III; quantitative impact study; capital; liquidity; Europe; Hungary;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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