The New Approach for Risk Regulation in Banks

Daniela Feschiyan and Radka Andasarova ()
Additional contact information
Radka Andasarova: University of National and World Economy, Sofia, Bulgaria

New Challenges in Accounting and Finance, 2020, vol. 3, 1-13

Abstract: The purpose of this report is to present the necessity of proceeding to new reforms in bank regulation and to increase the stability and risk sensitivity of the capital base under applying the Standardised Credit Risk Assessment Approach (SCRA) in banks. The dynamics in the bank regulation and supervision of credit risk assessment approaches are explored. In the paper, a thorough theoretical-methodological and historical-logical analysis was made of the evolution of the development and chronology of the global regulatory frameworks for banks - Basel 1, Basel 2 and Basel 3. The contemporary projections and challenges for the banks' management under the new regulatory and institutional changes are presented. The SCRA is a positive asset in bank capital regulation in contemporary banking. The revisions to the regulatory framework – Basel 3 by is a long continuous process influenced by numerous economic, social and political factors. The preparation of the Bulgarian banking system for a new reform of financial regulation is analyzed. The need for adoption of a new risk-based approach for capital assessment and the importance of transparency in bank financial reporting is proved.

Keywords: Basel Committee on Banking Supervision; Standardised Approach (SA); Credit Risk; Bank Exposures; Risk†Weighted Assets (RWA) (search for similar items in EconPapers)
Date: 2020
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://api.eurokd.com/Uploads/Article/112/NCAF.2020.03.01.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bco:ncafaa::v:3:y:2020:p:1-13

DOI: 10.32038/NCAF.2020.03.01

Access Statistics for this article

New Challenges in Accounting and Finance is currently edited by Prof. Dr. Orhan Elmacı

More articles in New Challenges in Accounting and Finance from EUROKD
Bibliographic data for series maintained by Sara Gunen ().