The legal impact of Basel III on the Financial Market in the Gulf countries
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Contents
INTRODUCTION3
Outline3
Background3
Problem statement4
Significance4
Target audience4
Research question4
Theoretical framework5
Comparison of Basel II and Basel III5
Ethical consideration5
Reliability and validity6
Methodology6
Limitations7
Gant chart7
REFERENCES8
INTRODUCTION
Outline
Introduction
Background
Problem statement
Significance
Target audience
Research question
Theoretical framework
Comparison of Basel II and Basel III
Ethical consideration
Reliability and validity
Methodology
Limitations
Gant chart
Background
Basel III is the latest proposal issued by Basel committee of BIS (Bank of International Settlement). The issues that had been left unaddressed in the Basel I and Basel II are focused in the latest version. It is believed by the economic analysts and think-tanks that the proposal is set to make its mark in the Saudi financial market and drastically improve the current scenario. This research carries out an in-depth analysis of the propositions made in Basel I and II, and find out its significance for the Saudi financial market.
Problem statement
Basel III requires the banks to hold 2.5% conservation buffer for upcoming stress period and emphasizing that equity must be maintained at 7%. The current study aims to encompass the legal issues that need to be addressed for the successful implementation of Basel III. The study further aims to gauge the positive impact it might have the Saudi market.
Significance
Saudi Arab financial market has been a relatively under-researched area. There have not been many studies that can provide one with information about the policies, subsequent challenges, suggestions and their implication for the Saudi economy. Basel III is a new concept and this research will lay down the foundation stone for the future research.
Target audience
The research will be of great consequence to the economic students, analysts, and the businesses directly affected after the implementation of Basel III. Keeping the time and budgetary constraints in mind, the research is narrowed down to the state of Saudi Arab specifically.
Research question
This research aims to answer the following the following question
What led to the formation of Basel III?
What are the potential impediments to the effective implementation of Basel III?
How is the Saudi financial market likely to be affected by this policy?
What would be the legal impact of Basel III on Saudi financial market?
Theoretical framework
Basel III is based on three basic pillars. The first pillar suggests a modern framework for capital. It maintains that there should be a fixed capital maintained by the financial institution and. The second pillar is based on the notion that single or individual banks activities must be evaluated by supervisor who can allocate the minimum capital requirement for that ...