The basel III controversy: A critical assessment of the views of Australian regulators

This paper critically examines the arguments put forward by Australian regulators in favour of Basel III and the Basel accords, more generally. We argue that Basel II contributed significantly to the global financial crisis (GFC) and the European crisis. We also suggest that Basel III is not a 'great leap forward' when compared with Basel II, its provisions will not make banks more resilient, its architects have not learned much from the GFC and that the international unification of banking regulation is a flawed idea.