Challenges for the banking system

MSc. Gentiana Filipi¹, Prof. Dr. Vjollca Karapici¹

¹Fakulteti i Ekonomisë, Universiteti i Tiranës

Abstract
The banking system is of vital importance for the economy of a country. Banks are institutions with very high impact and they are the center of the credit intermediation process. A destabilized banking system influences credit and liquidity providing for the entire economy.
Since 1985 over 30 banking crises were recorded in member countries of the Basel Committee[1], a repetition frequency translated into increased costs for the entire sector. The rotating global financial crisis, in the last few years, highlighted regulatory and governmental institutions worldwide need for further research and studies.
There was an immediate reaction of policymakers such as the Basel Committee on Banking Supervision, BCBS, and the Board of the International Accounting Standards, the IASB, taking important steps in improving the process of reporting with the drafting of international accounting standards and revision of regulatory capital.
Here is based on the origin of this research dedicated to key reforms to the banking system, capital agreement and financial reporting. This article focuses on the first part of a broader study enabling theoretical bunch of experiences encountered in this field. All analyzed studies converge toward the need for uniformity and synchronization during the global implementation of the Basel regulatory framework and IFRS.

Keywords: Basel 3, IFRS, JEL classification: E58, M40