The Impacts of Basel III on the Global Banking Regulations and the Responses of Regulatory Systems

Abstract

In 2007 and 2008, a wave of financial crises swept across the globe. The crisis exposed the low liquidity of capital and the inadequacy of the regulatory system under the Basel II. In order to ensure the stability of the international financial environment, the Basel Committee on Banking Supervision published the latest revision of Basel III in 2010. This essay examines the impact of the newly introduced Basel III on countries around the world, what countries around the world have done in response, as well as analyzing the shortcomings of China's current policies. In addition, to make recommendations based on the experience of other countries with regard to the problems that exist in our country and establish a Chinese regulatory system which is connecting with the world.