arbiter
JournalsPricingAccount

The Impact of Basel III Implementation on Bank Lending in South Africa

Xolani Sibande & Alistair Milne

South African Journal of Economics2025https://doi.org/10.1111/saje.12398article
AJG 1ABDC B
Weight
0.44

What the paper says

ABSTRACT This study investigates the impact of the Basel III capital requirement on the supply of bank credit in South Africa. The literature offers greatly varying estimates of the impact of bank capital requirements on loan supply. Using a specification closely modelled on a related study of Peru, we report panel regressions using monthly balance sheet data for the four biggest banks in South Africa. We distinguish between three different categories of bank lending for household and corporate borrowers and report complementary local projection estimates to capture dynamic impacts. We find little evidence that the introduction of higher capital requirements under Basel III has reduced the supply of bank credit in South Africa. We surmise that this is mainly due to the large banks being well capitalised and operating with capital buffers that are larger than regulatory minimum requirements.

3 citations

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.1111/saje.12398

Or copy a formatted citation

@article{xolani2025,
  title        = {{The Impact of Basel III Implementation on Bank Lending in South Africa}},
  author       = {Xolani Sibande & Alistair Milne},
  journal      = {South African Journal of Economics},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1111/saje.12398},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

The Impact of Basel III Implementation on Bank Lending in South Africa

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.44

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.32 × 0.4 = 0.13
M · momentum0.57 × 0.15 = 0.09
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.