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Basel III Capital Requirements and Constraint of Credit Supply in Open Transition Economy

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Global Versus Local Perspectives on Finance and Accounting (ACFA2018 2018)

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Abstract

The article contains formal analysis of credit supply constraints in open transition economies while the external solvency of economy and banking sector is ensured under negative international investment position, significant participation of foreign owners of domestic banks and increasing regulatory requirements of Basel III. The objective is to define the factors influencing the constraints of supply of credit both on macro- and banking sector level and to present the consequences of Basel III application of both tighter capital and stable funding sources requirements for credit supply.

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Acknowledgements

The article is processed as an output of the project Macrofinancial stability and financial cycle in countries with negative investment position that is supported by Internal Grant Agency of the University of Economics, Prague under No. F1/18/2017.

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Correspondence to Nad’a Blahová .

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Blahová, N., Brůna, K. (2019). Basel III Capital Requirements and Constraint of Credit Supply in Open Transition Economy. In: Procházka, D. (eds) Global Versus Local Perspectives on Finance and Accounting. ACFA2018 2018. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-11851-8_3

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