How Does Basel III Influence the Solvency Risks of Small and Medium-Sized Banks?
Basel III directly influences the solvency risks of small and medium-sized banks by enforcing stricter capital and liquidity requirements. These regulations mandate that banks maintain higher levels of high-quality capital, including risk-weighted assets and leverage ratios. For small and medium-sized banks, this means reducing their leverage and improving their financial resilience. At the same time,
