The Asian financial crisis was a period of financial crisis that gripped much
of East Asia and Southeast Asia beginning in July 1997 and raised fears of a
worldwide economic meltdown due to financial contagion. So, in order to combat
such crisis Basel 3 Regulation was created to reduce the risk of future liquidity
shocks. However due to the increase of capital buffer required by the regulation
banks might have a smaller amount of capital for their operational funds. The
purpose of this study is to analyze the impact of Basel 3 regulation to market
reaction based on banks performance. This study uses banks in Indonesia for the
sample that was listed in IDX before 2010, since the regulation was announced in
2011, and the market data for 2015-2017 in the duration before Basel 3 and 2018-
2020 for after the finalization of the regulation. the analytical tool used is 2 simple
regression and z-statistic to compare both models. The result of this study shows
that there is no significant difference in the market reaction after the Basel 3
regulation announcement.