Basel III, Financial Stability, and Regulatory Gaps: An Interview with Viral Acharya

#finance #bank #banking #financialregulations Viral Acharya, C.V. Starr Professor of Economics at NYU-Stern and former Deputy Governor of the Reserve Bank of India, delves into Basel III’s relevance and its impact on global banking. He discusses the challenges banks face in meeting new capital requirements, as well as the effects on lending, risk management, and competition. Acharya also highlights key gaps in the framework, questioning its effectiveness in preventing future crises. 0:00 Video starts 0:26 What is Basel III? 1:38 Pushback against Basel III 2:31 What are the implications for banks and the banking sector? 3:55 Increasing cost of capital for banks is a "trade-off" 5:24 Are there gaps that need closing?