Impact of Basel Iii Regulations on Banks: Evidence from Afriland First Bank in Cameroon

Abstract

Bank financing is an engine of economic growth, mainly where financial intermediation is more advanced. The public authorities are therefore faced with the obligation to advocate for the resilience of the financial system. As part of their assignments, supervisors are working to put in place prudential regulation that would require banks to have a solid financial base to face the various risks and perils. Although the financial crisis has confirmed the need for adjustments in prudential regulation, the financial institutions have denounced the high cost of the new Basel requirements, a cost that would inevitably weigh on the banking activity and, consequently, on the economic activity. Based on this observation, we are conducting an impact study whose objective would is to evaluate and demonstrate the impact of the implementation of the Basel III agreements in Cameroon.

Keywords: Banking; Basel III regulations; solid financial base; financial institutions;

DOI: 10.7176/RJFA/10-13-05

Publication date:July 31^st 2019