European Journal of Economic Studies, 2016, Vol.(18), Is. 4 486 Copyright © 2016 by Academic Publishing House Researcher Published in the Russian Federation European Journal of Economic Studies Has been issued since 2012. ISSN: 2304-9669 E-ISSN: 2305-6282 Vol. 18, Is. 4, pp. 486-491, 2016 DOI: 10.13187/es.2016.18.486 www.ejournal2.com UDC 33 Characteristics of Basel Principles and Standards in Banking Branimir Kalaš a , * , Nada Milenković a , Jelena Andrašić a , Miloš Pjanić a а University of Novi Sad, Serbia Abstract International banking devotes considerable attention to the minimum supervisory standards, which banks have meet in order to get and therefore retains the license to do business. Today, banking organizations have to ensure three fundamental principles like security, stability and profit. Security and stability in banks is relevant, because only in this way they can gain the customer trust and confidence. The subject of this paper is importance and implementation of Basel standards in banking. First, it's presented history of Basel Committee on Banking Supervision and basic principles for effective banking. Second, authors reflect three main Basel standards like Basel I, Basel II and Basel III and determine difference between them by using equations and tables. Keywords: banks, Basel, principles, standards. 1. Introduction Banks are faced with problem of high level of instability and concentration of different risk types which is basic characteristic of current state of the world financial system and banking markets. Acceptance of exposure to high risk caused the emergence of crisis and inability to collect overdue receivables, which implied destruction of the large number of banks in the world. Inadequate collateral and highlighted volatility of fundamental economic parameters as price, interest rates and exchange rates requires exceptional expertise and professionalism in risk managing, as well as precisely determined mechanisms and measures of supervision by regulatory financial institutions. With development of modern banking and industry, exposure to different types of risk is growing in business. Timely identification and quantification of all kinds of risk as well as adequate preventive measures of protection has become extremely relevant factors of business success in an increasingly complex economic conditions. It's illusory to not notice that there isn't sincere encouragement towards improving of banking regulation at the right time and thereby support the Basel Principles. Namely, all previous principles were adopted only after escalation of the crisis period and they were corrective characters, rather than preventive and protective function of the entire banking system. Their relevance is manifested through the regulatory framework raise the level which is necessary for successfully overcoming all obstacles in the banking field. It's important to give greater support to these standards as they are a prerequisite for successful business in the banking sphere. With the aim of stability in the * Corresponding author: E-mail addresses: branimir.kalas@ef.uns.ac.rs (B. Kalaš)