TY - JOUR

T1 - Capital Buffer Implication: Evidence for Russian Banks

AU - Pustovalova, Tatiana

AU - Makarova, Olga

N1 - Pustovalova, T. Capital Buffer Implication: Evidence for Russian Banks / T. Pustovalova, O. Makarova // American International Journal of Humanities and Social Science. - 2017. - Volume 3, Issue 1. - P. 49-54.

PY - 2017

Y1 - 2017

N2 - The article studies the interrelation between the stages of economic cycle and countercyclical buffer. Countercyclical buffer is aimed at forming a special reserve to be used during the economic downturn. For Russian banking system interrelations between the accumulation of capital surplus and stages of economic cycle is not evident. The authors make an assumption that Russian banks tend to decrease the capital buffer during the rise in economy and increase the capital buffer during the downturn. Recent global financial crisis showed the need to improve the regulation of the banking system and application of new requirements to the adequacy of capital of commercial banks. These requirements are aimed at strengthening the banks’ control over the system risk level and decreasing pro-cyclic effect of the banking system. Basel Committee on Banking Supervision introduced new requirements to the bank capital that also apply to Russian banking system. The regulatory requirements were raised for basic indicators, and

AB - The article studies the interrelation between the stages of economic cycle and countercyclical buffer. Countercyclical buffer is aimed at forming a special reserve to be used during the economic downturn. For Russian banking system interrelations between the accumulation of capital surplus and stages of economic cycle is not evident. The authors make an assumption that Russian banks tend to decrease the capital buffer during the rise in economy and increase the capital buffer during the downturn. Recent global financial crisis showed the need to improve the regulation of the banking system and application of new requirements to the adequacy of capital of commercial banks. These requirements are aimed at strengthening the banks’ control over the system risk level and decreasing pro-cyclic effect of the banking system. Basel Committee on Banking Supervision introduced new requirements to the bank capital that also apply to Russian banking system. The regulatory requirements were raised for basic indicators, and

KW - Basel III

KW - capital buffer

KW - economic cycle

KW - Russian banking system

KW - РИНЦ

M3 - Article

VL - 3

SP - 49

EP - 54

JO - American International Journal of Humanities and Social Science

JF - American International Journal of Humanities and Social Science

SN - 2415-1424

IS - 1

ER -