Journal

Volume 79, #2

       “Economic Sciences: theory and practice” is scientific, refereed, biannual journal. The Journal of “Economic Sciences: theory and practice” has been founded by Azerbaijan State University of Economics in 1994.              
The Journal has been received to registration in the centre of international ISSN (International Standard Series Number, ISSN-2220-8739). Also, it has been included by the Supreme attestation Commission under the President of Azerbaijan Republic to the list of scientific publications on economic sciences.


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BASEL STANDARDS AND THEIR APPLICATION

NIGAR HUSEYNLI


ABSTRACT
The main purpose of this study is to examine the Basel standards, which have such an important share in the banking sector. The study highlights the importance of Basel standards to determine how banks guarantee themselves and minimize their risks by applying Basel standards to the banking system. Actions and practices to be taken within the framework of banks with a strong and stable structure, affected by different levels of risks, have brought international research and standards creation to the agenda. With the establishment of the Bank for International Settlements in 1930, the global banking and financial sector was tried to be standardized and further developed. The Basel Committee on Banking Supervision, established in 1974 as part of the Bank for International Settlements; By trying to create international standards in areas such as risk management and capital adequacy, it aimed for banks to comply with these standards at an optimal level. While there are many rules created and published by the Basel Committee Standards to ensure financial stability is built on a solid foundation, the most widely recognized are: There are Basel I, Basel II and Basel III criteria.

Key Words: Banking, BASEL I standard, BASEL II standard, BASEL III standard, risk

Jel classification: E5, G2, G3
 



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