The Effect of Basel III Standards of Capital Adequacy on the Efficiency of US and EU G-SIBs and D-SIBs

One of the key areas of international post-crisis reforms in the financial regulation and control of financial stability is the development of a system of measures to reduce the risks associated with systemically important financial institutions. An important step was the identification of the assessment methodology for global and national systemically important banks, so that a tougher regulatory environment for these banks could be established. The increase in the regulatory burden for this financial organizations could not but affected their activities. Although the global implementation of Basel III requirements is still in progress, the question about the impact of the new regulatory framework on the efficiency of banking sector, in particular on the efficiency of systemically important banks, remains open. We conducted an analysis of the impact of Basel III capital adequacy requirements on the performance of G-SIBs and D-SIBs in the United States and the European Union.