Unravelling The Cost of Bank Regulation

The South African banking industry has been consistently recognised amongst the top ten banking sectors in the World by the World Economic Forum.  However, these high standards come at a cost and now a model has been developed to begin explaining how the Basel regulatory costs imposed on the banking sector are translated into a selection of banking products.

The model does not attempt to provide a pricing tool as it is based on a virtual bank with no staff, no overheads and no profit maximising objective on its loan portfolio.  The objective of the model is to demonstrate the changing cost structure over time with the introduction of the Basel Committee on Banking Supervision standards Basel I, Basel II and Basel III and may be of interest to both bankers and students in finance.

A short tutorial is provided to introduce you to the model.

“The model is available free of charge from veronicas@banking.org.za, (currently Version 1.0)”

More info:
© The Banking Association South Africa 2019