Ricerc@Sapienza

During the last 15 years the international financial systems of most developed countries have been characterized by conditions of severe weakness resulting by the Financial Crisis of 2007-2009. The banking sector was at the centre of the crisis as the market stress led to an acute re-concentration of on- and off-balance sheet risks in banks, putting pressure on capital buffers, liquidity and credit availability. The weaknesses in the banking sector amplified the transmission of shocks from the financial sector to the real economy. As a response, Basel Committee's programme promote a more robust supervisory and regulatory framework for the banking sector. In this perspective Basel Committee on Banking Supervision (BCBS) uses five key components: strengthening the regulatory capital framework; increasing banks' liquidity buffers; enhancing bank governance, risk management and supervision; improving market transparency; and deepening cross-border supervisory cooperation for internationally active banks. The efforts of both Supervisory and Authorities will promote a banking sector that is more resilient to future periods of economic and financial stress and help reduce systemic risk.
However, despite the progress made in finalising Basel III and IV there is a lot of market scepticism such as investor uncertainty over the sustainability of bank business models and the impact of legacy-related costs.
In this perspective the research objective are to define:
- the main strategic and operational impacts of Basel IV and the balance sheet adjustments made by bank;
- the market valuations and credit ratings for many banks;
- the strategic adjustments that banks may need to be made in order to achieve sustainable profitability.