CAPITAL ADEQUACY RATIOS AND COMPLIANCE WITH BASEL III: EVIDENCE FROM ALBANIA

Flamur Keqa and Uğur Ergün
Additional contact information
Flamur Keqa: Epoka University in Tirana, Albania
Uğur Ergün: Epoka University Tirana, Albania

Journal of Financial and Monetary Economics, 2020, vol. 8, issue 1, 112-118

Abstract: The capital adequacy regulations are safety mechanism for regulators and banks’ shareholders/depositors to minimize expected and unexpected risks from the solvency point of which arise as a result of liquidity risk and the credit risk in daily operations. National bank regulators are responsible to set capital adequacy requirements while international mandate is given to the Bank for International Settlement. The capital requirements of Bank for International Settlement are mandatory for their members while other regulatory authorities have competence to set independent requirements. In practice all of them are adopting prudent requirements similar to international standards. The study covers 12 banks in Albania for the period 2010-2018 examining the capital adequacy ratios and compliance of capital with international requirements. The result of our study show that banking system is well-capitalized and capital ratios are above the national and international capital requirements proving healthy banking system from the capital adequacy perspective.

Keywords: capital adequacy ratio; Western Balkan; national & international regulators; banking; commercial banks (search for similar items in EconPapers)
JEL-codes: E58 F68 G28 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.icfm.ro/RePEc/vls/vls_pdf_jfme/vol8i1p112-118.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:vls:rojfme:v:8:y:2020:i:1:p:112-118

Access Statistics for this article

More articles in Journal of Financial and Monetary Economics from Centre of Financial and Monetary Research "Victor Slavescu" Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Mateescu ().