The New Basel III rules and recent market developments

The Basel III rules introduce a comprehensive set of measures in order to strenghten the regulation, supervision and risk management of the banking sector as well as the wider financial sector. The new rules intend to targeting microprudential regulation which develops the resilience of banks, and macroprudential regulation that helps to improve mechanism keeping system-wide risks under control. Since the Basel documents have been released, legislations and processes are to be world-wide adopted in order to harmonize the national and/or group-wide rules with the newly introduced measures. This paper briefly presents the most important changes brought by the recently adopted Basel documents, in order to become familiar with the changes dully applicable from 1.1.2019.