Journal of
Italian
Banking
Association

year 100
 

Archive » November 2021 » Banks and the Basel III years

Banks and the Basel III years

Luigi Federico Signorini
November 2021 - n. 11
Keywords: Banche, Basilea 3, pandemia
Jel codes: G21, G28, I15

Banks have been able to cope with the 2020 crisis and the effects of the pandemic also thanks to the profound changes in the Basel 3 rules, leading to a significant strengthening of banks’ assets and liquidity, increasing market confidence in their ability to absorb large, unexpected shocks. As for Italian banks, the new rules have straightened out two distortions that were to their disadvantage: the imbalance between the requirements for credit risk and financial risk; and excessive tolerance towards internal models. The fact that Italian banks were «part of the solution and not part of the problem» suggests that something good has been accomplished. The hope is that the Basel rules will be transposed as quickly and faithfully as possible on a global scale.

Interested in this paper?
Buy the issue