Background of the Study
Global financial regulation has become increasingly important in maintaining financial stability, especially for emerging economies. The Basel III framework, developed by the Basel Committee on Banking Supervision, sets forth international standards for bank capital adequacy, stress testing, and market liquidity risk (Miller, 2023). This framework aims to strengthen the resilience of the global banking system by ensuring that banks hold sufficient capital buffers to absorb shocks and reduce systemic risks. Emerging economies often face unique challenges due to volatile capital flows and less mature financial markets. The adoption of Basel III principles in these economies can improve regulatory oversight, enhance investor confidence, and promote sustainable economic growth. However, the implementation of such stringent regulations may also impose compliance costs and constrain lending activities, potentially affecting economic development. This study investigates how the Basel III framework influences financial regulation in emerging economies, with a focus on its implications for stability and growth (Johnson, 2024; Lee, 2025).
Statement of the problem
Despite its objective to enhance financial stability, the Basel III framework poses significant challenges for emerging economies. The high compliance costs, operational difficulties, and potential constraints on credit availability can undermine economic growth. These challenges highlight the need for a balanced regulatory approach that maintains stability while fostering development. This study seeks to explore the trade-offs and implications of implementing Basel III in emerging markets (Miller, 2023; Lee, 2025).
Objectives of the Study
To investigate the impact of the Basel III framework on financial regulation in emerging economies.
To identify the challenges and trade-offs associated with its implementation.
To propose recommendations for balancing financial stability and economic growth.
Research questions
How does the Basel III framework affect financial regulation in emerging economies?
What challenges do emerging economies face in implementing Basel III?
What strategies can balance regulatory rigor with economic development?
Significance of the Study
This study is significant as it evaluates the implications of global financial regulation on emerging economies. The findings will provide valuable insights for regulators and policymakers in developing balanced approaches that promote financial stability without impeding growth (Johnson, 2024).
Scope and Limitations of the Study
The study is limited to the analysis of the Basel III framework and its impact on emerging economies. It does not cover other regulatory frameworks or regions outside the emerging market context.
Definitions of terms
Global financial regulation: International standards and rules governing financial institutions.
Basel III framework: A set of international banking regulations developed to enhance bank capital adequacy and liquidity.
Emerging economies: Nations experiencing rapid industrialization and economic growth, often with developing financial markets.
Background of the Study
Early-career researchers often face numerous challenges in establishing their academic reputation a...
Background of the Study
Persuasive discourse techniques in advertising have evolved into a critical area of study as they...
ABSTRACT: This study examines the benefits of early childhood education in fostering culinary skills among young children. Introducing culinar...
Background of the Study
For a long time, small and medium-sized businesses have been seen as a source o...
Background of the study:
Cross-channel marketing integration involves the seamless coordination of marketing efforts across...
ABSTRACT
This research work is essentially concerned with investigation of the causes and effects of non-communicabl...
Abstract
The purpose of the study was to investigate the rising cost of education and its implication on the youth in pu...
Background of the study
The promotion of indigenous language media has been a key strategy for cultural p...
ABSTRACT
The modern man lives in a skeptical age, one which finds the very idea of personified evil spirits to be a superstitious remnant...
ABSTRACT
This study was carried out to examine the perception and attitude of pregnant women in oredo local government t...