Structural Changes in the Slovak Banking Sector Capital Adequacy in the Context of Basel III

The main goal of the article is to assess changes in the capital and risk structure of Slovak banking sector in the context of Basel III rules which were introduced as the reaction of world regulators on challenges identified during latest financial crisis. In the first part of the paper we introduce and theoretically define the concept of capital adequacy in the context of Basel framework. In the second part we present the results of Slovak banking sector capital adequacy analysis, where we focus on the main drivers in the change of bank capital and risk structure. Further on we investigate the current state of Basel III implementation and the readiness of Slovak banks to meet regulatory requirements. The assumed contribution of the article is the understanding of capital and risk structure of Slovak banking sector and its readiness to meet the 2019 Basel III goals of banks stronger capital position.