An Analysis of Basel I, Basel II and Basel III and Its Impact on Profitability of Banks in Kingdom of Bahrain
Shafeeq Ahmed Ali1, Atul Bansal2
1Dr. Shafeeq Ahmed Ali, Assistant Professor, College of Administrative & Financial Sciences, Gulf University, Bahrain.
2Dr. Atul Bansal, Associate Professor, College of Administrative & Financial Sciences, Gulf University, Bahrain.
Manuscript received on 02 June 2019 | Revised Manuscript received on 10 June 2019 | Manuscript published on 30 June 2019 | PP: 2538-2559 | Volume-8 Issue-8, June 2019 | Retrieval Number: H6936068819/19©BEIESP
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The purpose of this study is to attempt and understanding the critical analysis of Basel-I, Basel-II and Basel-III. After the financial crisis in 2007 / 2008 Basel III has introduce Basel III which has a lot of changes in the regulation including higher capital ratio limits, higher capital standard and also introducing the new ratios of liquidity and leverage. This has pushed the banks toward structuring their exposures based on the riskiness of the assets and counterparty, as it was founded that the effect will harsh the exposures with high risk and a moderate effect will be exposures with low risk. The main objective of the research is to discuss the improvement on Basel requirements from Basel I through Basel II to Basel III and to find if Basel III will impact the profitability of the banks based on bankers’ opinion in Bahrain. The data of this study was collected from secondary and primary sources from selected Islamic and non-Islamic banks of Kingdom of Bahrain. Some findings and suggestions are addressed in the study that may be the prerequisite for banking organizational growth and development.
Keyword: Basel-I, Basel-II, Basel-III.
Scope of the Article: Analysis of Algorithms and Computational Complexity.