Abstract:

Financial crises that have arisen in recent years seem to have exercised influence over the whole world, the principal causes for which are known to stem from banking activities. Through banking, the increasing of immunity levels in financial institutions to crises has been targeted in the recently made regulations. Non-performing credits have paved ways for related banks to encounter perennial problems and caused financial institutions, and thus financial system, to be faced with grave risks. Within this framework, the authorities who coordinate financial sector have established the Basel I, II and III Criteria so that the banks and the clients for whom they have made loan available could manage all the risks involved well. As the regulations being enacted remain incapable within the process, it has been necessary that new criteria be adopted in the course of time. The Basel- III, the third phase of the Basel Criteria, are now incrementally applied during the period between 2013 and The Basel - III Regulations are of particular concern to credit institutions as well as to the institutions to use loan. The risks that financial institutions are likely to run within this period are graded in such a way that while the institutions in low-risk groups are allowed to take loan with more ease and at a lower cost, those institutions in relatively high risk groups borrow loan with more difficulty and at a higher cost. Globalization movements in capital markets have had an effect upon banking sector as well; it is therefore that the Basel-III Criteria endorsed on September 12, 2010 and due to be applied incrementally between 2013 and 2019 introduced effective regulations that aimed to overcome the deficiencies in the Basel-II Criteria as well as the financial crisis. The purpose of this study is to provide an outline of the Basel Regulations and then to reveal what kind of influence the Basel -III Criteria will extend over business organizations from financial institutions to application of funds

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