Basel III and recourse to Eurosystem monetary policy operations

Date: 2016-04
By: Bucalossi, Annalisa
Fonseca Coutinho, Cristina
Junius, Kerstin
Luskin, Alaoishe
Momtsia, Angeliki
Rahmouni-Rousseau, Imene
Sahel, Benjamin
Scalia, Antonio
Schmitz, Stefan
Prior Soares, Rita Isabel
Schobert, Franziska
Wedow, Michael
Following the emergence of the financial crisis in August 2007, the Basel Committee on Banking Supervision established in 2010 a new global regulatory framework. In addition to raising capital requirements, it introduced three ratios, two of which set out minimum standards for liquidity and funding risk, i.e. the liquidity coverage ratio and the net stable funding ratio, and one which aims to limit leverage in the banking system, i.e. the leverage ratio. All three ratios can have a number of implications for monetary policy implementation, in particular the liquidity coverage ratio and the net stable funding ratio owing to the special role of central banks in providing liquidity. This paper investigates the extent to which the regulatory initiatives might have already had an impact on banks’ behaviour in Eurosystem monetary policy operations. It also provides an overview of the regulatory state of play and major recent advancements in banks’ compliance with the three Basel III ratios. Based on aggregate data, the empirical evidence generally supports some of the theoretically predicted effects of the three ratios. However, no firm conclusions can be drawn as to whether the introduction of the three ratios could cause a significant change in banks’ recourse to Eurosystem monetary policy operations. This is partly due to the fact that, in aggregate, major developments, such as substantial fluctuations in the recourse to Eurosystem refinancing operations in the years between 2012 and 2015, have been driven by the financial crisis and the gradual recovery from it, as well as by the accommodative stance of monetary policy. JEL Classification: G28, E58
Keywords: Basel III, liquidity regulation, monetary policy implementation


在下方填入你的資料或按右方圖示以社群網站登入: 標誌

您的留言將使用 帳號。 登出 /  變更 )

Google+ photo

您的留言將使用 Google+ 帳號。 登出 /  變更 )

Twitter picture

您的留言將使用 Twitter 帳號。 登出 /  變更 )


您的留言將使用 Facebook 帳號。 登出 /  變更 )


連結到 %s

%d 位部落客按了讚: