The impact of Basel III on trade finance: the potential unintended consequences of the leverage ratio

Auboin, Marc; Blengini, Isabella

doi:10.1057/s41261-018-0071-6

Cited by 8 publications

(5 citation statements)

References 7 publications

(6 reference statements)

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“…where μ is the drift rate and σ is the volatility of the asset. This equation can be used in place of BASEL and PCA (Acharya, 2018; Auboin and Blengini, 2019; Jones, 2020) outline to create a generic distance-to-risk measure, given in equation (10): …”

Section: Methodsmentioning

confidence: 99%

Contagion risk: cases of Islamic and emerging market banks

Yoon

Choudhury

Saha

et al. 2021

IMEFM

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Purpose Globally influential Islamic banks from the Middle East and Southeast Asia carry voluminous correspondence banking with banks from China and India, leading to potential spillover effect of contagion among the banks from these regions. This study aims to investigate the Islamic banks systemic risk contagion with major banks from China and India. Design/methodology/approach Having the option pricing theory in the backdrop, the authors calculated three different distance to risk measurements (default, insolvency and capital). The authors have included top six listed globally influential Islamic banks, top seven Indian banks and top eight Chinese banks based on their net asset value. They then measured the banks’ extreme shocks based on the extreme value theory by using the logistic regression model. These extreme shocks helped the authors to map the spillover among the selected banks from multiple regions. Findings The authors have found strong evidences of directional risk spillover among the banks in this sample. Islamic banks are receiving a significant risk spillover from the other sample banks but transmitting less toward the other banks from India and China. Hence, there is strong one-directional risk contagion toward the Islamic banks in the study sample. Practical implications This research would be particularly useful to the regulators and bankers from emerging and Islamic markets to understand the conniving nature of the crisis by effectively mapping the source, destination and implementation of the shock transmission mechanism of the potential financial contagion. Originality/value Even though the corresponding banking among the top Islamic banks from the Middle East and Southeast Asian countries, and banks from India and China, is on the rise, the assessment of risk among these banks has been limited. In particular, the authors extended on the extreme value theory to focus on the wider impact of spillover, including significant direction of contagion from non-Islamic banks to Islamic banks.

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Section: Methodsmentioning

confidence: 99%

Contagion risk: cases of Islamic and emerging market banks

Yoon

Choudhury

Saha

et al. 2021

IMEFM

View full text Add to dashboard Cite

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“…The banking landscape has changed significantly over the last couple of decades and especially after the 2008 financial crisis. New regulations had an impact on many aspects of banking activity including: liquidity [ 1 ], capital management [ 2 ], profitability [ 3 ], trade finance [ 4 ], lending [ 5 ], off-balance sheet activity [ 6 ] to name but a few. Another area where there was a significant impact for many banks was in the volume and complexity of the new financial regulations and subsequent expansion of banks’ compliance requirements [ 7 – 9 ].…”

Section: Introductionmentioning

confidence: 99%

Integrating Regulatory Technology (RegTech) into the digital transformation of a bank Treasury

Solms

2020

J Bank Regul

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The volume and complexity of financial regulations have increased significantly since the 2008 financial crisis. This has put increasing pressure on banks to monitor and report a range of intricate exposures to comply with new prudential requirements. Regulatory Technology (RegTech) is an emerging technology trend leveraging Information Technology and Digital Innovations that can greatly assist with a bank’s regulatory management process. A consideration is that these technologies can sometimes be expensive and inefficient if deployed on an ad hoc and stand-alone basis. An option is to incorporate RegTech into the digital transformation strategy of a management function such as Treasury. Integrated adoption would mean the digital platform can be deployed to support both strategic management activities and enhanced regulatory processes within Treasury, thereby ensuring commercial and prudential objectives are aligned. RegTech can provide an invaluable tool, in a business-as-usual environment, as well as in real-life stress events, such as the recent Coronavirus outbreak. This paper explores the potential of RegTech and the merit of incorporating it into a smart Treasury department.

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“…The banking landscape has changed significantly over the last couple of decades and especially after the 2008 financial crisis. New regulations had an impact on many aspects of banking activity including: liquidity [ 1 ], capital management [ 2 ], profitability [ 3 ], trade finance [ 4 ], lending [ 5 ], off-balance sheet activity [ 6 ], to name but a few. Another area where there was a significant impact for many banks was in the volume and complexity of the new financial regulations and subsequent expansion of banks’ compliance requirements [ 7 – 9 ].…”

Section: Introductionmentioning

confidence: 99%

Integrating Regulatory Technology (RegTech) into the digital transformation of a bank Treasury

Solms¹

2020

J Bank Regul

View full text Add to dashboard Cite

The volume and complexity of financial regulations have increased significantly since the 2008 financial crisis. This has put increasing pressure on banks to monitor and report a range of intricate exposures to comply with new prudential requirements. Regulatory Technology (RegTech) is an emerging technology trend leveraging information technology and digital innovations that can greatly assist with a bank's regulatory management process. A consideration is that these technologies can sometimes be expensive and inefficient if deployed on an ad hoc and stand-alone basis. An option is to incorporate RegTech into the digital transformation strategy of a management function such as Treasury. Integrated adoption would mean the digital platform can be deployed to support both strategic management activities and enhanced regulatory processes within Treasury, thereby ensuring commercial and prudential objectives are aligned. RegTech can provide an invaluable tool, in a business-as-usual environment, as well as in real-life stress events, such as the recent coronavirus outbreak. This paper explores the potential of RegTech and the merit of incorporating it into a Smart Treasury department.

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The impact of Basel III on trade finance: the potential unintended consequences of the leverage ratio

Cited by 8 publications

References 7 publications

Contagion risk: cases of Islamic and emerging market banks

Contagion risk: cases of Islamic and emerging market banks

Integrating Regulatory Technology (RegTech) into the digital transformation of a bank Treasury

Integrating Regulatory Technology (RegTech) into the digital transformation of a bank Treasury

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