Topic

Importance of Basel III for the Future of Banking Industry in Singapore

Instructions

With special emphasis on credit information, discuss the importance of Basel III for the future of banking industry in Singapore.

Answer preview

The Basel III is a supervisory framework was created to regulate financial institutions by regulating capital requirements, leverage rations and liquidity. Essentially, the banking sector derives confidence from the framework following the mistakes that resulted in the recent financial crisis. The Basel III regulatory framework is designed to be integrated into the domestic supervisory laws for banks. Singapore is one of the many countries that have integrated Basel III into the existing statutory regulations on banks (Bank for International Settlement, 2013). The suitability and appropriateness of Basel III can be examined on the basis of its impact on credit. In order to understand the general impact of the framework on credit formation and expansion, it is important to review the regulations of the Basel III framework.

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