Basel III and its Impacts on International Swedish Banks
Kerman, Marika (2012)
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This thesis will present the Basel III framework and discuss its possible implications on the banking industry, focusing specifically on the Swedish banking industry. There will also be an analysis of two Swedish banks, Handelsbanken and Nordea to map their readiness to comply with the Basel III requirements. The objective of this thesis was to gain in-depth knowledge of the current framework still in progress, of its final development and implementation. The two banks were examined to compare the impacts on the chosen banks. The author’s professional background and personal interests were also behind the choice of topic. The thesis process began late in the spring of 2012 and the main methods used were collecting information from several reliable publications and making conclusions based on the gained information. The results of the thesis show that the Basel III framework has serious effects on the whole banking industry. Positive impacts include for instance increased financial stability. However possible additional costs may also occur due to up-coming changes in the banks. The banks analyzed, Handelsbanken and Nordea, proved to be extremely well equipped to comply with the Basel III requirements even though the Swedish government will most likely require higher requirements than proposed by the Basel III framework. This is justified due to the higher risks related to the Swedish banking industry compared to the European level, which is also discussed in the research.