Research Student: Chiemerem V. Oranugo
Basel III regulations: suitability of high quality liquid asset requirements in the context of sub-Saharan African banking systems
The last global financial crisis prompted the introduction of new regulations to checkmate future occurrences in the banking sector. These new regulations known as Basel III have inputs such as minimum liquidity requirements that would ensure resilience and stability in the industry. However, this framework is argued to be a ‘one size fits all’ and raises the question of its suitability for sub-Saharan Africa.
Nigeria, Kenya and South Africa were selected to represent the sub-Saharan African jurisdiction. The reason being that they represent the biggest economies within their respective regional bodies. Sub-Saharan Africa countries are seen as emerging economies and the implementation of such global framework within the jurisdiction may be at variance.
This study focuses on the viability of high quality liquidity asset which is a sub-set of the Basel III liquidity regulations within the sub-Saharan African region. The process shall be carried out by analysing the environmental factors as they affect this regulation and thereby, determine the progress and future possible controls within the jurisdiction.
The outcome is expected to open up the gateway for decentralisation of financial global frameworks to conform to requirements of regional jurisdictions. It would also enhance speedy regulatory compliance as such financial structures reflect local contents.
I completed my LLM in International Banking and Finance at University of Leeds.