Economic Analysis of new Banking Regulations
2012). Economic Analysis of new Banking Regulations. XVI IRSPM Conference, Rome, Tor Vergata University, 11 – 13 April 2012 Peer reviewed.; (
In the first part, the new rules agreed on by international bodies such as BIS (Basel III) and International Financial Stability Board (IFSB) will be presented. The focus will be on new equity requirements and new rules to avoid the “too big to fail” trap for sys-temically important financial institutions. Other aspects such as liquidity, taxation and compensation incentives (especially the role of bonuses) will be left out.
In the second part, the implementation of these new rules in the advanced econo-mies are compared. Based on a detailed case study of UBS, the effects of the Basel III rules will be compared for the Deutsche Bank, United Bank of Switzerland and Bank of America. We also discuss the timing of implementation, does it differ among different countries?
In the third part, the paper evaluates whether the banking sector will be more stable applying these new rules from two points of view.