Basel III: Evaluation and Impact in the Czech Republic
|Author:||Mgr. Jakub Gleta|
|Year:||2011 - summer|
|Leaders:|| doc. PhDr. Petr Teplý Ph.D.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:||M.A. with distinction from the Dean of the Faculty of Social Sciences for an excellent state-final examination performance.|
|Abstract:||The thesis is focused on content and impact of the new Basel Capital Accord, commonly
known as Basel III. These rules react to recent development in global financial markets and
introduce some substantial changes into regulatory approach, which include changes to the
definition and required amount of regulatory capital and presents new liquidity requirements.
The thesis then assesses new rules form two points of view. First, a quantitative model is
constructed that predicts the impact of new rules on capital adequacy of four major Czech
banks based on default rates data. In the second part of the analysis, institutional impact of
new regulation is stressed, namely the question of how new rules fit within the theoretical
framework of optimal regulatory architecture and what pitfalls they have. The thesis is unique
in the eclectic nature of its approach, whereby two seemingly disparate approaches oppose
each other and an attempt at synthesis is presented.
|Downloadable:|| Diploma Thesis of Gleta