BASEL AGREEMENT 3 IN FUNCTION OF STRENGTHENING THE BANKING SYSTEM STABILITY AT GLOBAL LEVEL

Abstract

Complex business conditions urge financial sector supervisors to modify existing or create new standards, whose application in financial operations should be positively reflected on the stability of the business. Accordingly, the objective of this paper is to highlight the importance of continued efforts of the competent authority for the supervision of banks in terms of maintaining the stability of the banking system, because only stable banking systems can contribute to the overall prosperity. The paper will consider the last Basel 3 framework, where special attention is paid to the guidelines and recommendations designed to improve the banking system capability. It is true that the Basel Agreement was created during the global economic crisis, but it can be said with certainty that it had not been created only by the influence of the crisis, but is also the result of continuous efforts of the authorities responsible for the supervision.