oai:eurokd.com:article/112 2025-12-15

The New Approach for Risk Regulation in Banks <p style="text-align:justify;">The purpose of this report is to present the necessity of proceeding to new&nbsp;reforms in bank regulation and to increase the stability and risk sensitivity&nbsp;of the capital base under applying the Standardised Credit Risk Assessment&nbsp;Approach (SCRA) in banks. The dynamics in the bank regulation and supervision&nbsp;of credit risk assessment approaches are explored. In the paper, a thorough&nbsp;theoretical-methodological and historical-logical analysis was made of the&nbsp;evolution of the development and chronology of the global regulatory frameworks&nbsp;for banks - Basel 1, Basel 2 and Basel 3. The contemporary projections and&nbsp;challenges for the banks' management under the new regulatory and institutional&nbsp;changes are presented. The SCRA is a positive asset in bank capital regulation&nbsp;in contemporary banking. The revisions to the regulatory framework – Basel 3 by is a long continuous process influenced by numerous economic, social and&nbsp;political factors. The preparation of the Bulgarian banking system for a new&nbsp;reform of financial regulation is analyzed. The need for adoption of a new&nbsp;risk-based approach for capital assessment and the importance of transparency&nbsp;in bank financial reporting is proved.</p> EuroKD Publishing 2020-07-12 Text https://api.eurokd.com/Uploads/Article/112/NCAF.2020.03.01.pdf https://doi.org/10.32038/NCAF.2020.03.01 en Pages 1–13