publication . Article . 2015

Implementing the countercyclical capital buffer in South Africa: practical considerations

Burra, Pravin; Riaan de Jongh; Raubenheimer, Helgard; Vuuren, Gary; Wiid, Henco;
Open Access English
  • Published: 01 Jan 2015 Journal: South African Journal of Economic and Management Sciences (issn: 1015-8812, eissn: 2222-3436, Copyright policy)
  • Publisher: AOSIS
Abstract
<jats:p>The Basel II regulatory framework significantly increased the resilience of the banking system, but proved ineffective in preventing the 2008/9 financial crisis. The subsequent introduction of Basel III aimed, inter alia, to supplement bank capital using buffers. The countercyclical buffer boosts existing minimum capital requirements when systemic risk surges are detected. Bolstering capital in favourable economic conditions cushions losses in unfavourable conditions, thereby addressing capital requirement procyclicality. This paper contains an overview of the countercyclical capital buffer and a critical discussion of its implementation as proposed in B...
Subjects
free text keywords: Basel III, procyclical, countercyclical, buffer capital, Management. Industrial management, HD28-70, Business, HF5001-6182, Economics as a science, HB71-74, Economics, Finance, business.industry, Financial crisis, Minimum capital, Risk-adjusted return on capital, Capital adequacy ratio, Basel II, Systemic risk, Capital requirement
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publication . Article . 2015

Implementing the countercyclical capital buffer in South Africa: practical considerations

Burra, Pravin; Riaan de Jongh; Raubenheimer, Helgard; Vuuren, Gary; Wiid, Henco;