An Analysis of Basel III: An Accord That Risks Becoming Obsolete Even Before Coming into Force?
The Basel III accord was eagerly anticipated and its adoption had a significant positive effect on the banking stocks in late 2017. Of course, there were other considerations behind the positive sentiment, such as the progress recorded by the Brexit talks between the European Union and Great Britain at that time. For analysts, however, the lion’s share of this positive outlook was attributed to the fact that, after almost two years of negotiations with behind-the-scene stratagems and a great deal of lobbying, the leaders of the biggest central banks had succeeded to reach a compromise regarding the new Basel III regulations, which would have an important impact on the activity of the commercial banks. According to the statements of certain officials, this framework was intended to be final. More
