Basel III in Africa: making it work

Peterson Ozili

African Journal of Economic and Management Studies, 2019, vol. 10, issue 4, 401-407

Abstract: Purpose - Basel III is a framework to protect the global banking system. The purpose of this paper is to provide a policy discussion on Basel III in Africa. Design/methodology/approach - The significance of Basel III is discussed, and some ideas to consider when implementing Basel III to make it work in Africa, are provided. Findings - Under Basel III, the African banking industry should expect better capital quality, higher capital levels, minimum liquidity requirement for banks, reduced systemic risk and differences in Basel III transitional arrangements. This paper also emphasizes that there should be enough time for the transition to Basel III in Africa; a combination of micro and macro-prudential regulations is needed; and the need to repair the balance sheets of banks, in preparation for Basel III. Originality/value - The discussions in this paper will benefit policymakers, academics and other stakeholders interested in financial regulation in Africa such as the World bank and the International Monetary Fund.

Keywords: Basel III; Africa; Financial stability; Bank regulation; Capital regulation; Bank performance; Bank business models; E44; G21; G28 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:ajemsp:ajems-05-2019-0206

DOI: 10.1108/AJEMS-05-2019-0206

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