Global Banking Regulations and Performance: A Study of Basel III Implementation in Developing and Developed Nations

Global Banking Regulations and Performance: A Study of Basel III Implementation in Developing and Developed Nations

Dr. Deepika Dhawan1

Assistant Professor, Department of Management, Rayat Bahra University

Abstract

This study explores the impact of Basel III regulations on bank performance in both developing and developed countries. A stable financial system is recognized as a key driver of economic growth, with banks playing a central role in facilitating technological advancements and economic development. However, advancements in global banking, alongside financial crises such as the 2007-08 global downturn, have highlighted the need for robust risk management frameworks. The Basel norms, particularly Basel III, were introduced to strengthen capital requirements, liquidity buffers, and supervisory processes to mitigate systemic risks. This research compares the effects of Basel III on banks in five developing countries (Bangladesh, India, Malaysia, Sri Lanka, Thailand) and five developed countries (Canada, France, Germany, the UK, USA), focusing on changes in efficiency and productivity. By examining these countries' progress in Basel III implementation, the study offers valuable insights into how global banking regulations impact bank performance, highlighting differences across economic contexts and contributing to a deeper understanding of financial sector stability.