Bank's Efficiency According to Implementation of Recomendations of Basel 3

The main aim of the Course paper is to evaluate the implementation of Basel standards of capital adequacy in Russia. In order to achieve it the following objectives will be addressed: • To analyze the history of Basel Committee and make a comparative analysis of its main documents • To investigate the efficiency of implementation of Basel capital adequacy standards of banks from two different groups based on amount of assets • To make a regression analysis and check it for significance • To make a stress-testing model of capital adequacy based on regression model The object of the study is banking sector of Russian Federation, the subject – capital adequacy ratio (N1.0). The most appropriate method for theoretical part was analysis of different articles and the charter of the committee. The choice of methods for empirical part wasn’t random and it was decided that the best method to adopt for this investigation was regression analysis and analysis of banking reports. The paper consists of three chapters. The first one is devoted to theoretical analysis of the evolution of Basel committee and to making a comparative analysis of main documents. The second chapter is connected with Russian Federation and implementation the Basel standards in Russia. The results of analysis are the main features and problems of this procedure. The main part of the third chapter is empirical research which is connected with regression model and stress-testing model. The problem of implementation of capital adequacy standards is urgent and significant especially in Russia nowadays. The economic crisis in 2008 specified the weaknesses of Russian banking system and identified the necessity of strict implementation of Basel standards. Due to this fact, it is really important now to assess the implementation of Basel capital requirements.