Basel II: Implementation of the New Accord in Cyprus; a case study about the island’s biggest bank, the Bank of Cyprus.
Vasiliou, Loizos (2010) Basel II: Implementation of the New Accord in Cyprus; a case study about the island’s biggest bank, the Bank of Cyprus. [Dissertation (University of Nottingham only)] (Unpublished)
The banking regulation is one of the hottest topics nowadays due to the current financial turmoil. The following study is about the New Capital Accord, known as Basel II, issued by the Basel Committee and its effects on the Bank of Cyprus after its implementation in 2007. After an extensive literature review and empirical study about capital structure, regulation effects on bank lending and risks, this study concludes that Basel II had an effect on the Bank of Cyprus but the examined factors seem not to have played a significant role. Although the factors taken into consideration are the ones derived from the Basel II proposal (such as the Tier 1 and Tier 2 ratios) limitations of the study (such as the recent booming of the Cyprus economy) or the relatively small time of the implementation period , they have caused some disturbances on the magnitude of the effect of Basel II. Another important issue that is covered in this research is the evolution of risk management within the Bank of Cyprus. Still, it has not been proven that Basel II has had a key role in the shape and creation of the ‘Group’s Risk Management Department’ in 2005. Despite that, information of a great importance was collected about the Bank of Cyprus risk management evolution, the Cyprus regulatory framework and the effects of Basel II on the island’s leading bank.
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