A study of the potential implications of implementing Basel III on the Maltese banking sector

Abstract

This dissertation analyses the impact which the implementation of Basel III will have/has had/will be having on the Maltese banking sector. Prior to discussing the manner in which Basel III reformed its predecessors, the author gives the context within which the accord was promulgated. An analysis of the impact of the accord on Maltese regulation and supervisory practices is then made with particular attention being given to the manner in which the Maltese regulator performs its functions. Having discussed the impact on the local regulator as well as Maltese legislation, the study then shifts to an empirical analysis of the balance sheets of local banks. Compliance with the provisions of the accord is assessed together with the impact which the accord‟s implementation has had on the banks‟ respective financial performance to date. An attempt at analysing any foreseeable future impact is then made. A final chapter then provides a comprehensive summing up of what was stated within the preceding chapters and an attempt at giving recommendations is made. Proposals for further studies are also put forward.