The Basel regulations: theory and case study (CBC Banque)

Details

Supervisors

Pouchain, Frédéric

Faculty

Louvain School of Management

Degree label

Master [120] en Ingénieur de gestion

Abstract

This master thesis has as objective to give an overall overview of the Basel regulations and see their implications for CBC Banque. It conducts a qualitative and quantitative analysis on the regulations implementation in a medium sized Belgian bank. It is divided in two main parts namely a theoretical and a practical part. In the theoretical part, it first analyses the key institutions involved in the creation, the implementation and the supervision of financial regulations such as the Basel regulatory frameworks. Then, a first section aims to clarify the rationale behind the successive Basel regulations as defined by the BCBS. Then, a second section outlines how the legal implementation took place in the US and the EU. Finally, a last section looks at the practical implementation in the EU with a particular attention to the Belgian banking sector. In the practical part, a first section focuses on the description of CBC Banque. Then, a second section highlights how the bank is dealing with the current Basel requirements namely on the capital, leverage and liquidity ratios. Lastly, a final section summarizes the financial implementation cost of the Basel regulations and links it with the current strategy undertaken. The period considered for the cost analysis is 2012 – 2017. The Master Thesis is finally concluded by balancing the pros and cons of the successive regulations namely through the collection of industry actors’ opinions. It also includes a global conclusion on the case study and a final passage on the limits of this thesis.