Baselsche abkommen

What Is Baselsche Abkommen?

The Baselsche Abkommen, also known as the Basel Accords, are a series of international banking regulations issued by the Basel Committee on Banking Supervision (BCBS) that establish guidelines for banking supervision. These accords fall under the broader category of financial regulation and aim to strengthen global financial stability by improving the quality of banking supervision worldwide. The Baselsche Abkommen set international standards for bank capital requirements, liquidity, and risk management to ensure that financial institutions maintain sufficient capital to absorb unexpected losses and mitigate systemic risk within the financial system.

History and Origin

The origins of the Baselsche Abkommen trace back to the mid-1970s, following significant disturbances in international currency and banking markets, notably the failure of Bankhaus Herstatt in West Germany in 1974. Bank for International Settlements. In response, central bank governors from the Group of Ten (G10) countries established the Basel Committee on Banking Supervision (BCBS) at the end of 1974.¹⁵ Headquartered at the Bank for International Settlements (BIS) in Basel, Switzerland, the Committee's mandate was to enhance financial stability by improving the quality of banking supervision worldwide and to serve as a forum for regular cooperation among its member countries.¹⁴,¹³

The first major accord, Basel I, was introduced in 1988, focusing primarily on credit risk and establishing a minimum capital adequacy standard of 8% of risk-weighted assets.¹² Following further developments and lessons learned, especially regarding market and operational risks, Basel II was published in 2004, introducing a "three-pillar" framework: minimum capital requirements, supervisory review, and market discipline.¹¹ The most recent iteration, Basel III, was developed in response to the 2007–2009 financial crisis. P¹⁰ublished in 2010, Basel III significantly raised both the quality and quantity of regulatory capital and introduced new standards for liquidity risk and leverage ratio.

⁹## Key Takeaways

• The Baselsche Abkommen are a series of international banking regulations aimed at enhancing global financial stability.
• They establish minimum standards for banks' capital, liquidity, and risk management practices.
• Developed by the Basel Committee on Banking Supervision (BCBS), the accords are a response to major financial crises, with Basel III being the latest iteration designed after the 2007–2009 global financial crisis.
• The framework is based on pillars that address minimum capital requirements, supervisory review, and market discipline.
• While not legally binding, member countries commit to implementing these standards through their national laws and regulations.

Formula and Calculation

A core concept within the Baselsche Abkommen, particularly Basel I and II, is the Capital Adequacy Ratio (CAR), which measures a bank's capital in relation to its risk-weighted assets. The formula for CAR is:

Where:

• Tier 1 Capital: Represents the highest quality capital, primarily common equity and disclosed reserves, which can absorb losses without a bank being required to cease trading.
• Tier 2 Capital: Represents supplementary capital, such as revaluation reserves, undisclosed reserves, hybrid instruments, and subordinated debt, which provides a lower level of loss absorption.
• Risk-Weighted Assets (RWA): The total of all assets held by a bank, weighted according to their risk profile. For example, cash may have a 0% risk weighting, while loans to corporations might have a 100% risk weighting.

The Baselsche Abkommen specifies the minimum CAR that internationally active banks must maintain to ensure they have sufficient capital to cover potential losses.

Interpreting the Baselsche Abkommen

The Baselsche Abkommen serve as a critical framework for assessing the resilience of individual banks and the banking system as a whole. A higher Capital Adequacy Ratio (CAR) generally indicates a stronger, more resilient bank, better able to withstand unexpected losses from credit risk, market risk, and operational risk. Regulators use these ratios to monitor banks and intervene if capital levels fall below the prescribed minimums.

Beyond the quantitative requirements, the supervisory review pillar emphasizes the importance of a bank's internal processes for assessing capital adequacy, promoting robust risk management. The market discipline pillar encourages transparency and disclosure, allowing market participants to evaluate a bank's risk profile and capital strength, thereby fostering sound banking practices. Adherence to the Baselsche Abkommen standards is often seen as a benchmark for a country's financial sector stability and its integration into the global financial system.

Hypothetical Example

Consider "Alpha Bank," an internationally active bank subject to Basel III regulations. To calculate its capital adequacy, Alpha Bank identifies its Tier 1 capital as $100 billion and its Tier 2 capital as $20 billion. Its total risk-weighted assets, determined by applying specific risk weights to various assets, amount to $1,500 billion.

Using the Capital Adequacy Ratio formula:

Alpha Bank's CAR is 8%. Under Basel III, the minimum Common Equity Tier 1 (CET1) capital requirement is 4.5% of risk-weighted assets, with an additional 2.5% capital conservation buffer, bringing the total CET1 requirement to 7%. The total Tier 1 capital requirement is 6%, and the total capital requirement (Tier 1 + Tier 2) is 8%. Alp⁸ha Bank's 8% CAR meets the minimum total capital requirement, indicating that it holds sufficient regulatory capital relative to its risks. If Alpha Bank were to fall below these minimums, it would face increased scrutiny and potential restrictions from its banking supervision authorities.

Practical Applications

The Baselsche Abkommen have profound practical applications across the global financial landscape. They form the bedrock of prudential regulation for banks, influencing how financial institutions manage risk, allocate capital, and conduct their business.

• Risk Management Frameworks: Banks develop sophisticated internal risk models to comply with the accords, improving their capabilities in assessing and managing various risks, including counterparty risk.
• Capital Planning: The Baselsche Abkommen directly dictate the minimum capital requirements banks must hold, impacting their profitability, dividend policies, and overall strategic planning. Banks frequently engage in stress testing to ensure they can meet these requirements under adverse economic scenarios.
• Interbank Lending and Money Markets: The liquidity requirements introduced by Basel III, such as the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR), have significantly influenced how banks manage their short-term funding and interact in the money markets. Thi⁷s has led to banks holding more high-quality liquid assets and adjusting the tenor of wholesale funding.
• ⁶ Global Financial Stability: By promoting a more resilient banking sector, the Baselsche Abkommen aim to reduce the likelihood and severity of future financial crises, thereby enhancing overall global financial stability. The reforms implemented under Basel III reforms have led to banks significantly increasing their Common Equity Tier 1 ratios, enhancing their loss-absorbing capacity.

##⁵ Limitations and Criticisms

Despite their widespread adoption and stated goals of enhancing financial stability, the Baselsche Abkommen have faced several limitations and criticisms.

One notable critique is the potential for "regulatory capture," where large, internationally active banks may have influenced the rules, particularly concerning the use of internal risk models to determine capital requirements. This can create a disparity, allowing some institutions with extensive compliance infrastructure to "optimize" their capital needs, while others, particularly in developing economies, must adhere to more rigid guidelines.

An⁴other area of concern is the compliance cost, which can be substantial for smaller and cooperative banks. These institutions may struggle to develop sophisticated risk-weighting systems or absorb the expenses associated with constant audits, stress tests, and compliance reporting. This can lead to increased consolidation in the banking sector and potentially hinder financial inclusion in some regions.

Fu³rthermore, the increased risk sensitivity introduced by the Baselsche Abkommen, particularly Basel II and III, has been criticized for potentially leading to higher bank capital requirements for loans to emerging and developing countries. This could result in higher borrowing costs and reduced capital flows to these regions, potentially impeding economic development. Som²e argue that the frameworks' design does not always align well with specific financial systems, such as Islamic finance, which may face challenges fitting their instruments into the established risk models.

##¹ Baselsche Abkommen vs. Capital Requirements Directive (CRD)

While the Baselsche Abkommen provide the international framework for banking regulation, the Capital Requirements Directive (CRD) refers to the specific legislative acts in the European Union that transpose these international standards into binding law for financial institutions operating within the EU.

In essence, the Baselsche Abkommen define what the international standards are, while the Capital Requirements Directive (CRD) specifies how these standards are to be implemented and enforced within the EU. Other jurisdictions have their own national equivalents for implementing the Basel standards.

FAQs

What is the primary goal of the Baselsche Abkommen?

The primary goal of the Baselsche Abkommen is to enhance global financial stability by establishing common international standards for banking regulation, specifically concerning bank capital, liquidity, and risk management. This helps ensure banks have sufficient capital to absorb losses and reduce the risk of financial crises.

Are the Baselsche Abkommen legally binding?

The Baselsche Abkommen themselves are not legally binding international treaties. They are recommendations and standards issued by the Basel Committee on Banking Supervision (BCBS). However, member countries and other jurisdictions are expected to implement these standards into their national laws and regulations, making them legally binding at the domestic level.

How many Basel Accords have there been?

There have been three main iterations of the Basel Accords: Basel I (1988), Basel II (2004), and Basel III (published starting in 2010). Each subsequent accord has built upon and refined the previous one, primarily in response to developments in financial markets and lessons learned from past financial crisis events.

What are the "three pillars" of the Basel Accords?

The three pillars, primarily introduced with Basel II and carried forward into Basel III, are:

1. Minimum Capital Requirements (Pillar 1): Specifies the minimum amount of capital banks must hold against their exposures to credit, market, and operational risks.
2. Supervisory Review Process (Pillar 2): Requires national supervisory authorities to assess banks' internal capital adequacy assessments and risk management practices.
3. Market Discipline (Pillar 3): Encourages transparency through public disclosure requirements, allowing market participants to assess a bank's risk profile and capital adequacy.

How does Baselsche Abkommen impact an average person?

While the Baselsche Abkommen directly regulate banks, their impact extends to the average person by promoting a more stable and resilient banking system. A more stable banking system reduces the likelihood of bank failures and financial crises that can lead to economic downturns, job losses, and difficulties accessing credit. By safeguarding the banking sector, the accords indirectly contribute to economic stability and consumer confidence.