Results of Quantitative Impact Study
In accordance with the Strategy for the implementation of „International Convergence of Capital Measurement and Capital Standards – Basel III”, at the end of 2016 and at the beginning of 2017 the Banking Agency of Republika Srpska conducted the Quantitative Impact Study to ascertain the impact of new regulatory framework.
Activities related to the preparation and implementation of the study were carried out in cooperation with the Banking Agency of the Federation of BiH and Banks Association of BiH, along with the technical assistance provided by the World Bank.
Quantitative Impact Study included the calculation of regulatory capital, financial leverage ratio, capital requirements for credit risk under the standardized approach, also including techniques of credit risk mitigation, capital requirements for operational risk under the basic indicator approach and standardized approach, capital requirements for market risk under the standardized approach, as well as the calculation of liquidity coverage ratio.
Quantitative Impact Study of applying new regulatory framework on banks and banking sector of Republika Srpska was performed on the basis of data as of 30 September 2016 delivered by the banks with head office in Republika Srpska. Apart from quantitative indicators, the study also resulted in the overview of qualitative criteria and banks’ readiness for the application of new regulatory framework.
The results of Quantitative Impact Study on the Republika Srpska banking sector can be found here.