General conditions and main problems of implementing the Basel III international standards for the banking system of Kazakhstan

Аннотация

Based on the lessons of the financial crisis of 2008-2009, the Basel Committee
of Banking Supervision launched a revision of its requirements on
capital sufficiency. In this connection, Basel III document was adopted by the
Basel committee of banking supervision. Currently, the community is having
many questions about the standards and their application, the timing of the introduction
of Basel 3, the possible consequences of these changes. Therefore,
this leads to the relevance of this research.The paper considers the approaches
of the National Bank of the Republic of Kazakhstan toward the capital adequacy
requirements and conservation buffer for the second-tier banks in the
process of upcoming reform of banking regulation and international settlement
known as “Basel-III”. Basic provisions of Basel III as well as the principles
of integration of the country’s banking system to the Basel agreement are
discussed. In particular, the author focuses on such principles as tightening
of capital adequacy requirements, establishment of single liquidity standards,
and additional standards for the global systematically important financial institutions.
The paper provides an overview of possible impact that Basel III
standards might exert on the banking system operation, economic growth and
financial stability. Further, the author conducts a comparative analysis of capital
adequacy requirements and conservation buffer established by the regulators
in such countries as Kazakhstan, Russia, and Singapore.