Adjustment of banking activity according to basel III requirements: Experience and problems of Eastern Europe countries

Abstract

Adjustment of banking activity is one of key problems in our times and is acquiring a particular importance both for banks themselves and their shareholders and also for customers and depositors. Therefore in order to ensure reliable operation of commercial banks and prevent their vulnerability to economic insecurity, the supervisory bodies are continuously improving the methods of and approaches towards the management of bank risks accenting a paramount importance of capital adequacy and liquidity. The objective of the research is to identify the impact of Basel III regulation methods on the banking system stability and economic growth. The main results of the study are the identification of positive and negative aspects of banking activity regulation according to Basel III requirements and the obtaining of evidences from Eastern Europe countries about consequences of nonmonetary regulation of banking activity.