Luxembourg paper says banks’ profitability will not suffer at hands of Basel III

bigbis

Basel III regulations will have a limited impact on banks' profitability, according to a working paper published by the Central Bank of Luxembourg on January 25.

The authors, Gaston Giordana and Ingmar Schumacher, use data on Luxembourg's banks from 2003–11 to estimate the usefulness and effectiveness of the Basel III regulations.

The stricter liquidity coverage ratio "has an insignificant impact on banks' profitability", the paper finds. However, the higher capital-to-asset ratio can lead to a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: