Factors influencing the implementation of Basel III: An empirical analysis of the UAE banks

  • Received January 9, 2021;
    Accepted March 15, 2021;
    Published March 29, 2021
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/bbs.16(1).2021.14
  • Article Info
    Volume 16 2021 , Issue #1, pp. 152-167
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This work is licensed under a Creative Commons Attribution 4.0 International License

Basel III accord was introduced in 2010 to support banks facing the sever effect of the 2007–2008 financial crisis in terms of liquidity and capital adequacy. The importance of this paper stems from the investigation of the implementation of this Accord in the UAE, and what are the reasons behind the effective implementation. While some previous studies on the UAE have examined Basel Accord, no studies have so far examined the effective implementation of Basel III. In this study, a modified questionnaire was used, a total of 90 bank senior managers responded to the questionnaire and their responses were used to answer the research questions and hypotheses. The results of the regression analysis support the hypotheses proposing a significant positive relationship between implementation effectiveness and expected benefits and availability of resources needed. The results of the analysis did not support the influence of the variables of awareness, the role of management, and the role of the central bank. Based on the findings of this study, three recommendations were made. First, to promote the effective implementation of the Basel Accords in the UAE’s banking sector. Second, banks should review current implementation processes and plans to ensure that employees understand the requirements for implementing Basel III. And third, the UAE Central Bank should be more involved in setting a framework for implementing regulations to ensure the effective implementation of Basel III.

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    • Figure 1. Theoretical framework
    • Table 1. Respondent characteristics
    • Table 2. Reliability of factors influencing the effectiveness of Basel III implementation in the UAE
    • Table 3. Descriptive statistics
    • Table 4. Classification of the factors in each category
    • Table 5. Correlation coefficients between independent variables
    • Table 6. Summary of regression results
    • Table 7. ANOVA of differences between bank types
    • Conceptualization
      Rama Rezq Aljaber, Hussein A. Hassan Al-Tamimi
    • Data curation
      Rama Rezq Aljaber, Hussein A. Hassan Al-Tamimi
    • Formal Analysis
      Rama Rezq Aljaber, Hussein A. Hassan Al-Tamimi
    • Investigation
      Rama Rezq Aljaber, Hussein A. Hassan Al-Tamimi
    • Methodology
      Rama Rezq Aljaber, Hussein A. Hassan Al-Tamimi
    • Project administration
      Rama Rezq Aljaber, Hussein A. Hassan Al-Tamimi
    • Resources
      Rama Rezq Aljaber, Hussein A. Hassan Al-Tamimi
    • Software
      Rama Rezq Aljaber, Hussein A. Hassan Al-Tamimi
    • Writing – review & editing
      Rama Rezq Aljaber, Hussein A. Hassan Al-Tamimi
    • Writing – original draft
      Rama Rezq Aljaber, Hussein A. Hassan Al-Tamimi
    • Supervision
      Rama Rezq Aljaber, Hussein A. Hassan Al-Tamimi
    • Validation
      Rama Rezq Aljaber, Hussein A. Hassan Al-Tamimi
    • Visualization
      Rama Rezq Aljaber, Hussein A. Hassan Al-Tamimi