Basel III banking regulations effects on Turkish banking sector

The Basel III regulations were announced in November 2010 to further tighten these arrangements, after the Basel II criteria announced in 2004 were inadequate during the 2008 global financial crisis. Under Basel III regulations; In parallel with the risky transactions of banks, the definition of capital used in capital adequacy calculations has been changed, and it is conditioned that their capital should be increased. Turkey has already understricted control of the banking system due to banking and foreign exchange crises in November 2000 and February 2001, which resulted in the sinking of 25 banks, and has begun to keep close monitoring of the risky transactions of banks, especially by bddk, tmsf and cbt hands. For this reason, Turkey has already implemented most of the Basel III regulations. In this study, general data of the banking sector for the period 2007:M06- 2019:M09 were used to analyze the effects of Basel III regulations on the Turkish Banking System. The staticity of the series; The ADF and structurally fractured ADF unit were examined by root tests and two of the series were found to be static at the level and four were static at the first difference. The pairing relationship between the series has been examined by the Border Test approach and it has been determined that the relationship of cointegration exists between the series on all models. Long and short-term analyses between the series were carried out by ARDL method. According to this; In the face of increases in operational risk in transactions and market risk based on transactions, the liquidity proficiency ratio of banks and the capital adequacy rate have been increased. In addition, when the total amount of risk-weighted transactions carried out in the Turkish Banking system increased by 1%, the amount of legal equity increased by 0.85%. The coefficient of the puppet variable created for Basel III was also found to be positive and statistically significant in line with pre-expectations. This is proof that Basel III regulations are successfully implemented in the Turkish Banking System. The results of the reliability tests of the models and the fact that the models' error correction mechanisms are working also proves that the results are reliable.