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Did Basel III reduce bank spillovers in South Africa
Published Date:
2024-04-15
Author:
Serena Merrino, Ilias Chondrogiannis
Last Modified Date:
2024-04-15, 09:37 AM
Category:
Publications > Working Papers | What's New
We examine the effect of post-2010 banking regulation in South Africa on financial stability, macroeconomic variables and bank performance. We focus on risk spillovers and increased network and tail connectedness between banks, using a sample of nine listed South African banks in 2008–2023. The implementation of Basel III regulation, particularly capital adequacy ratios, has reduced connectedness-related risks but there is weak evidence of an effect of regulation on bank performance.