Download or read book The Consequences of the New Basel Capital Accord Basel II for Bank Lending to Corporate Borrowers written by Katrin Sülberg and published by diplom.de. This book was released on 2004-07-09 with total page 109 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inhaltsangabe:Abstract: The central problem and resulting question of this thesis was: 'Will Basel II make credits in the Mittelstand more expensive?' In view of the previous analysis on possible capital requirements and changes in credit conditions for German small and medium-sized enterprises, the answer to this question can be adequately answered: On average, Basel II does not make credits in the Mittelstand more expensive. Basel II has an influence on the amount of regulatory capital the banks have to hold. The costs of this scarce factor are included in the risk premium which is part of the borrower s credit rent. Therefore, the credit rent would ceteris paribus be higher if capital requirements rose. However, it has been shown that for about 90% of German companies, capital requirements will even be lower in Basel II. This is because these companies will belong to the retail segment in Basel II where there is a reduction in regulatory capital (compared to the current 8%) up to a high probability of default between 7% and 8%, which would apply to a company in default or bankruptcy. Additionally, capital requirements for small and medium-sized enterprises can be further reduced due to the extended recognition of collaterals. Basel II has introduced types of collaterals that small and medium-sized companies are more often able to deliver, namely account receivables and real estate. It can therefore be concluded that a possible future increase in average credit rent levels for German small and medium-sized enterprises must have other reasons than the banks costs for regulatory capital. Zusammenfassung: Jede Wirtschaft beruht auf einem Kreditsystem, das heißt, auf der irrtümlichen Annahme, der andere werde gepumptes Geld zurückzahlen (Kurt Tucholsky, 1931) Kreditinstitute spielen eine besondere Rolle in modernen Volkswirtschaften. Sie sind nicht nur Mittler zwischen Kreditnehmern und Einlegern, sondern stellen darüber hinaus vielfältige nicht bilanzwirksame Finanzdienstleistungen zur Verfügung. Dabei ist der professionelle Umgang mit Kredit-, Markt-, Liquiditäts- und anderen Risiken eine der wichtigsten Leistungen von Finanzintermediären. Solche Risiken dürfen jedoch nicht zu Instabilitäten im Finanzsektor führen. Über die eigene Risikovorsorge der Institute hinaus wurden deshalb besondere Aufsichtsregeln für Kreditinstitute geschaffen, unter denen die Eigenkapitalregeln eine herausragende Rolle einnehmen. Im dynamischen und [...]
Download or read book International Convergence of Capital Measurement and Capital Standards written by and published by Lulu.com. This book was released on 2004 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Basel II written by United States. Congress. House. Committee on Financial Services. Subcommittee on Financial Institutions and Consumer Credit and published by . This book was released on 2005 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The New Basel Capital Accord and the Future of the European Financial System written by Rym Ayadi and published by CEPS. This book was released on 2004 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this report is to provide a detailed, up-to-date and critical analysis of the New Basel Capital Accord framework. It focuses on the limitations and pitfalls that may deserve further investigation, particularly at the European level. Moreover, it provides a provisional assessment of its effects on small- and medium-sized European banks, as well as small- and medium-sized European enterprises. It examines the procyclicality of the new Accord and offers mechanisms to counter it. Finally, it addresses the challenges of implementing the new rules at the EU level.
Download or read book Studies on the Potential Impacts of the New Basel Capital Accord written by Katalin Mérő and published by . This book was released on 2003 with total page 160 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Consequences of basel II for small and mid sized enterprises written by Björn Schlüter and published by diplom.de. This book was released on 2002-06-26 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inhaltsangabe:Abstract: At present, rating is the number-one-topic discussed, both within the banking community and also, even more frequently, at enterprises. The second consultative package of the Basel Committee for Banking Supervision provides a basic change in equity capital contribution of banks. It is expected to change the rules of the credit business with institutional customers considerably. As a result, especially small and mid-sized enterprises are forced to enhance their credit standing in order not to struggle with the serious consequences of Basel II. This case study shows how! Inhaltsverzeichnis:Table of Contents: 1.INTRODUCTION4 1.1Overview4 1.2Definition of the new Basel Capital Accord4 1.3Targets5 1.4Structure5 2.BASICS6 2.1Small and mid-sized Enterprises (SMEs)6 2.1.1Definition of SMEs6 2.1.2EconomicSituation andImportance ofSMEs7 2.2Rating7 2.2.1Credit ratings7 2.2.2External ratings by rating agencies8 2.2.3Bank-internal ratings9 2.2.4Function of credit ratings10 2.2.5Rating procedure and structure12 2.2.6Rating as an opportunity to prepare for Basel II16 3.BASEL II - THE NEW BASELCAPITAL ACCORD18 3.1The Basel Committee of Banking Supervision18 3.2The way from Basel I to Basel II18 3.3Overview of the new Capital Approach19 3.3.1The first Pillar: Minimum Capital Requirements19 3.3.1.1In context of granting credits to small and mid-sized companies23 3.3.1.2Possibilities of asset securitisation26 3.3.2The second Pillar: Supervisory Review Process27 3.3.3The third Pillar: Market Discipline27 4.THE CONSEQUENCES OF BASEL'S RESOLUTIONS29 4.1Current financial requirements of the small to medium-sized business sector29 4.2Internal vs. external rating of SMEs31 4.3Actual preparation status of SMEs35 4.4Rating under aspects of Investor Relations42 4.5Alternative financing possibilities for SMEs44 4.5.1Effects on banks45 4.5.2Effects on interest rates for SMEs46 4.6Possibilities for SMEs to prepare for Basel II48 4.6.1Implementation of a value-based management50 5.CONCLUSION55 6.APPENDIX57 6.1Index of Abbreviations57 6.2Index of Literature58
Download or read book Risk Management written by Michael Frenkel and published by Springer Science & Business Media. This book was released on 2005-12-06 with total page 842 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dealing with all aspects of risk management that have undergone significant innovation in recent years, this book aims at being a reference work in its field. Different to other books on the topic, it addresses the challenges and opportunities facing the different risk management types in banks, insurance companies, and the corporate sector. Due to the rising volatility in the financial markets as well as political and operational risks affecting the business sector in general, capital adequacy rules are equally important for non-financial companies. For the banking sector, the book emphasizes the modifications implied by the Basel II proposal. The volume has been written for academics as well as practitioners, in particular finance specialists. It is unique in bringing together such a wide array of experts and correspondingly offers a complete coverage of recent developments in risk management.
Download or read book Bank Capital and Loan Loss Reserves Under Basel II written by Giovanni Majnoni and published by World Bank Publications. This book was released on 2004 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Majnoni, Miller, and Powell propose an integrated approach to minimum bank capital and loan loss reserves regulation. They break new ground in two main areas. First, the authors provide an explicit measurement of the credit loss distribution for a sample of emerging countries providing a benchmark for discussing the appropriate calibration of new regulatory capital and loan loss provision requirements for non-G10 countries. Second, on normative grounds, they propose a simplified version of the "internal rating based" (IRB) approach as a transition tool that, while retaining a risk-based definition of solvency ratios, implies reduced supervisory monitoring costs and could therefore be of interest to emerging countries where supervisory resources are particularly scarce. This paper--a product of the Finance Cluster Sector Unit, Latin America and the Caribbean Region--is part of a larger effort in the region to analyze the effects of bank capital regulation"--World Bank web site.
Download or read book Risk Based Capital written by Orice M. Williams and published by DIANE Publishing. This book was released on 2009-05 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: Basel II, the new risk-based capital framework based on an international accord, is being adopted by individual countries. It includes standardized and advanced approaches to estimating capital requirements. In the U.S., bank regulators have finalized an advanced approach rule that will be required for some of the largest, most internationally active banks and proposed an optional standardized approach rule for non-core banks that will also have the option to remain on existing capital rules. This report examines: (1) the markets in which banks compete; (2) how new capital rules address U.S. banks' competitive concerns; and (3) actions regulators are taking to address competitive and other potential negative effects during implementation. Illus.
Download or read book The Impact of Basel II on Small and Medium sized Enterprises in Germany written by Nickels Wieneke and published by GRIN Verlag. This book was released on 2005-01-14 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2004 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,7 (B+ 68%), Oxford Brookes University, language: English, abstract: This dissertation examines the current discussion about the introduction of the New Basel Capital Accord and the impact it will have on Small and Medium sized Enterprises in Germany. SMEs or the ‘Mittelstand’ are the carrying pillar for the German economy: 20 million employees work for SMEs and produce a value added subject to VAT of 49% of the German economy. These establishments are not only innovative and progressive in the way they conduct their business; its owners and managers are also an important factor for the aggregate demand in Germany. With reflection on the requirements of Basel II the major weaknesses of SMEs are revealed: their provision with own funds is traditionally low compared to large companies and bank loans present a main source of debt finance. Minimum capital requirements are an essential part of banking supervision and banking regulation and help ensuring the financial stability of an economy. Financial stability is vital for a country because it helps to absorb losses and protects consumers from the loss of their investments. This was not so in Thailand when the Asian Crisis started in 1997. One reason for the Asian Crisis, among others, was inadequate banking supervision. The Basel Committee has produced a set of minimum requirements for effective banking supervision which can be applied to every country. The so called ‘1988 Accord’ or ‘Basel I’ is currently being modified into ‘Basel II’ and likely to be introduced in the beginning of 2007. This paper is mainly concerned with the change in the calculation of minimum capital requirements (MCR), i.e. how much capital credit institutes put aside as a cushion against future losses. The main impact of Basel II on SMEs in Germany is that the future calculations of the MRC will depend on the company’s individual solvency and not on a fixed percentage of a loan.
Download or read book The New Basel Capital Accord written by Benton E. Gup and published by Cengage Learning. This book was released on 2004 with total page 484 pages. Available in PDF, EPUB and Kindle. Book excerpt: Jonathan Edwards was a preacher, pastor, revivalist, and theologian. This volume unpacks his magnificent theological vision, which starts with God’s glory and ends with all creation returning to that glory. Sean Michael Lucas has converted his years of teaching on Edwards into this valuable work, which places Edwards’s vision in an accessible, two-part framework. Part one focuses on Edwards’s understanding of redemption history-God’s cosmic, grand work from eternity past to eternity future, where all things are united in Christ. Part two examines Edwards’s perspective on “redemption applied”-how that gracious, divine work unfolds in space and time to personally transform individuals, stirring their affections, illuminating their minds, and moving their wills to form new habits and practices. This overview of Edwards’s theology will prove to be a thought-provoking, encouraging guide to contemporary believers at every stage of their spiritual journey.
Download or read book How Will Basel Ii Affect Bank Lending to Emerging Markets An Analysis Based on German Bank Level Data written by Thilo Liebig and published by . This book was released on 2005 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates whether the new Basel Accord will induce a change in bank lending to emerging markets using a comprehensive new data set on German banks' foreign exposure. We test two interlinked hypotheses on the conditions under which the change in the regulatory capital would leavelending flows unaffected. This would be the case if (i) the new regulatory capital requirement remains below the economic capital and (ii) banks' economic capital to emerging markets already adequately reflects risk.On both accounts the evidence indicates that the new Basel Accord should have a limited effect on lending to emerging markets.
Download or read book Consequences of selected Basel III regulations for real estate developers written by Laura Gerke-Teufel and published by GRIN Verlag. This book was released on 2014-07-09 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt: Masterarbeit aus dem Jahr 2013 im Fachbereich BWL - Investition und Finanzierung, Munich Business School, Sprache: Deutsch, Abstract: The high leveraged American real estate investment market dominated by speculators, brought about a global financial crisis of epic proportions in 2008. The global financial recession, which followed, highlighted a gloomy rate of interdependence in the banking world. It exposed the tight interconnection of the American real estate market and the structures of the global financial market (Panagopoulos et al. 2009, 2-4). In December 2010, the Basel Committee on Banking Supervision published the report ''Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems'' which will be implemented gradually across the European Union (among others) between 2013 and 2019 and supplements the existing International Convergence of Capital Measurement Document (Basel II) which was implemented in 2008 (Basel Committee on Banking Supervision, 2013). The reformed capital and liquidity requirements for banks, Basel III, is a response to the global financial crisis and represents a substantial step forward from its predecessor regime, Basel II which already based credit costs on the degree of risk. One of the most significant outcomes of Basel III will be the enormous rise in the banking industry's capital requirements and the rise in lending as well as borrowing costs (Basel Committee on Banking Supervision, 2013). Real estate developers heavily depend on debt capital for their projects and partake usually only with a small amount of equity capital in a project. If the access to bank loans will be limited or restricted in the future, developers will have to adapt their financing model to the new market conditions and challenges posed by Basel III and take other financing alternatives into consideration in order to decrease dependence on bank loans (Drucker, 2012). Other financing alternatives might also gain attraction if senior loans become more restricted or the securities or the equity required by the bank increase so much that the return on investment of real estate developers will make investments unprofitable or they might not able to provide these securities. They might not know how to proceed and restructure their financing model adapting it to a lower amount of senior debt. The increased loan documentation due to Basel III might take so long that the developer will not be able to realize the project viably anymore due to fast changing market conditions (Drucker, 2012).
Download or read book Revisiting Risk Weighted Assets written by Vanessa Le Leslé and published by International Monetary Fund. This book was released on 2012-03-01 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we provide an overview of the concerns surrounding the variations in the calculation of risk-weighted assets (RWAs) across banks and jurisdictions and how this might undermine the Basel III capital adequacy framework. We discuss the key drivers behind the differences in these calculations, drawing upon a sample of systemically important banks from Europe, North America, and Asia Pacific. We then discuss a range of policy options that could be explored to fix the actual and perceived problems with RWAs, and improve the use of risk-sensitive capital ratios.
Download or read book The Basel Handbook written by Michael K. Ong and published by . This book was released on 2007 with total page 710 pages. Available in PDF, EPUB and Kindle. Book excerpt: Comprehensively researched, this volume assists and advises the financial practitioner of every possible consequence of the latest Basel Accord - including advice on the implementation of systems affected by the Accord's various regulations.
Download or read book An Investigation of the Impact of Basel II on the Improvement in Risk Management Practice Globally written by Frédérik Arns and published by GRIN Verlag. This book was released on 2007-09 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay from the year 2006 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: A, University of Westminster (Westminster Business School), course: International Risk Management, 19 entries in the bibliography, language: English, abstract: The new Basel Accord will be introduced in 2007, this publication examines in how far the new package of regulations will benefit risk management globally. After evaluating contradictory points of view of several internationally active groups, the author comes to the conclusion that even though the final impact cannot yet be observed Basel II is likely to improve the current situation of risk management in the market.
Download or read book The New Basel Capital Accord and SME Financing written by Rym Ayadi and published by Centre for European Policy Studies. This book was released on 2005 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt: The First Basel Capital Accord, implemented in 1988, was aimed at ensuring the soundness and stability of the international banking system. The new accord, Basel II, which is planned for implementation in December 2006, is intended to strengthen the framework for dealing with credit risk. This book provides an informative analysis of what Basel II means for the small and medium-sized enterprize (SME) sector in Europe and its impact on its credit financing conditions. It also presents a detailed analysis of how banks formulate an internal rating system and illustrates how this system works in practice. Finally, it concludes with the key measures that should be taken by banks, SMEs, and public policymakers to improve financing in the new rating culture.
