Creative Commons

This dissertation was written as part of the MSc in Banking and Finance at the International Hellenic University. The main goal of the dissertation is to capture the impact of the new regulation Basel IV on some of the largest commercial European banks. Basel Committee on Banking Supervision introduces regulations regarding the capital adequacy that banks need to have in order to be protected from crises such that in 2008 and from elimination in their liquidity. Basel IV is a new regulation and particularly is an extended version of Basel III, which need to be implemented until 2023 of all European banks. Basel IV introduced more capital adequacy for banks and bigger capital ratios. The more capital a bank holds, the safer is in appearance of a crisis. For the purposes of the dissertation five of the largest commercial banks with big capitalization adequacy were selected around Europe (Deutsche Bank, Credit Suisse Bank, Barclays Bank, Piraeus Bank, BNP Paribas). A database for the period 2016-2023 was created for all five banks for specific performance, capital and liquidity ratios. Ratio analysis, correlation matrix and regression analysis were selected to examine the relationship between them and how each measure affects the other. The results show that there is inverse relationship between performance ratios of commercial European banks and the capital requirements banks need to have, under Basel IV regulation. Banks should focus on all changes of Basel IV and to be ready for new challenges.