Author(s)

Lei Lei ¹, Yuan Yue ²

Affiliation(s)

¹ Southampton Business School, University of Southampton, Southampton, UK
² Adam Smith Business School, University of Glasgow, Glasgow, UK

Corresponding Author

Yuan Yue

ABSTRACT

The objective of this paper to providing critical ensuring effective financial risk management and working as a safeguard to protect the entire financial system. Many scholars hold the view that the purpose of introducing Basel III regulations is to promote the establishment of capital buffer, which will help overcome the financial pressure that the global financial system may encounter. In addition, the improvement of Basel III appears in the form of counter cyclical capital, and its buffer capacity is higher than the minimum capital requirement; In turn, this may help significantly reduce the systemic risk that banks could have seen.

KEYWORDS

Basel III, Bank, Capital Buffer, Countercyclical Capital

CITE THIS PAPER

Lei Lei, Yuan Yue. Financial risk management based on Basel III. Financial Engineering and Risk Management (2021) 4: 65-69. DOI: http://dx.doi.org/10.23977/ferm.2021.040409.

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