Implementing Basel III in Licensed Commercial Banks in Sri Lanka
Posted: 12 Apr 2017
Date Written: May 1, 2015
The Global Financial Crisis (GFC) uncovered major shortcomings in the effectiveness of regulations governing banks. One such governance measure which has been a major focus for improvement in its effectiveness is the Basel Framework. This measure was designed to act as a safeguard against bank failures, but proved inadequate during the financial meltdown of 2007-08. Basel III has been introduced in 2010 as a measure to mitigate such events from repeating. Basel III imposes a additional measures that Financial Institutions would need to comply with. Given the backdrop of the regulation, implementation of this framework is being watched closely by all concerned stakeholders, i.e. customers. shareholders, regulators, potential investors.
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