Banking is a key factor in the economic system, which is why it is very important that banks operate responsibly, pay attention to the risks in their business operations, and maintain a level of regulatory capital that suits their level of exposure or risk. All these aspects are governed and provided by bank regulation. For this reason, the introductory section of the master's thesis begins with a presentation of the basic characteristics of bank regulation, i.e., preventing systemic risks, ensuring smooth operation of the monetary policy, and designing prudential requirements. These objectives are being realized at several levels. First, there is the international level, where the rules are collected in the Basel standards (Basel I–IV). From the perspective of the master's thesis, the most important standards are Basel III and IV, which were adopted in response to the global financial crisis of 2008. The next regulatory level is represented by the European implementing legislation; the key documents are Regulation 2019/876/EU and Directive 2019/878/EU, which have introduced the Basel III and IV standards into the European Union. The final regulatory level is national legislation, which is why the master's thesis briefly presents the Slovenian banking system. The main objective is to verify whether the new Basel and European legislations actually prevent the emergence of new crises or mitigate their consequences. That was verified using statistical data on key indicators. The first challenge for the new regulation was the COVID-19 crisis and the new regulation came through. Based on statistical data on the new regulation and on dealing with the crisis and its consequences on a global and national scale, it can be determined that the new regulation is effective and appropriate, and has contributed a decisive step towards a stable, solid and shock-resistant financial system.
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