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Browsing BI Theses by Author "Abdulah Kameric"
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Item Restricted Too-big-to-fail & the Effectiveness of Current Banking Regulations : a Case Study on Credit Suisse(2023) Abdulah Kameric; Mantel, Peter; Villegas, Erick Behar; Faculty of Business Administration; Berlin International University of Applied SciencesAI-GENERATED ABSTRACT: Abstract: This study provides a comprehensive analysis of the impacts of Basel II and Basel III on Credit Suisse's capital management and risk profile from 2008 to 2013. Central to this transformation was the issue of banks that had grown "too big to fail" (TBTF). By examining annual reports, regulatory disclosures, and financial statements, we assessed key capital ratios, risk-weighted assets (RWAs), and liquidity positions to evaluate the bank's response to regulatory changes. We observed a steady strengthening of Credit Suisse's capital position during the period, with notable increases in tier 1 ratios and core tier 1 ratios. These improvements were largely attributable to effective management of RWAs and tier 1 capital, supported by measures such as the sale of treasury shares and risk reduction strategies. The transition to Basel II.5 and Basel III brought more stringent capital requirements, but Credit Suisse demonstrated resilience, with improved capital ratios and lower RWAs. In terms of liquidity management, the bank maintained a substantial liquidity pool, effectively managing both institution-specific and systemic market stress scenarios. The study highlights the significant role regulatory frameworks play in shaping banks' capital and risk management strategies and underscores the critical importance of maintaining adequate capital and liquidity levels to ensure financial stability. Our findings suggest that the implementation of Basel regulations has successfully enhanced the resilience of Credit Suisse in the face of complex market dynamics and stringent regulatory requirements. Keywords: Basel II, Basel III, Credit Suisse, capital management, risk profile, too big to fail, capital ratios, risk-weighted assets, liquidity management, financial regulation