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This paper considers the implementation challenges facing the Basel Committee’s new proposals on bank capital standards …. When compared with the existing Capital Accord, the proposals represent a shift across two intersecting dimensions …—regulatory versus economic capital, and rules-based versus process-oriented regulation. On minimum capital standards, the case for using …
Persistent link: https://www.econbiz.de/10005768910
the consequence of the occurrence of credit rationing on farmer's capital accumulation, investment and supply. The method … discount rate. Finally, if the uncertainty is introduced, then the level of investment spending and capital accumulation is …
Persistent link: https://www.econbiz.de/10008597176
Loan review is a process routinely used by banks to assess the current value of loan portfolios. Provisioning is a technique to translate loan review results into the balance sheet. It allows for ongoing valuation of loans. Both are core elements of credit risk management and important to...
Persistent link: https://www.econbiz.de/10005248195
We study how investors account for the riskiness of banks' risk-weighted assets (RWA) by examining the determinants of stock returns and market measures of risk. We find that banks with higher RWA had lower stock returns over the US and European crises. This relationship is weaker in Europe...
Persistent link: https://www.econbiz.de/10009654141
The New Basel Accord aims to ensure that international banks’ regulatory capital reflects more closely the credit … quality of their loan portfolios. This means that capital charges will be higher for lending to low credit quality borrowers …. Some have argued that this increased risk sensitivity will lead to a curtailment in the supply of capital to emerging …
Persistent link: https://www.econbiz.de/10008470108
-level limited liability, but are more exposed to the risk of capital expropriation than are branches. Thus, branch-based structures …
Persistent link: https://www.econbiz.de/10008470382
The 1988 Basel I Accord set the common requirements of bank capital to promote the soundness and stability of the … international banking system. The agreement required banks to hold capital in proportion to their perceived credit risks, and this … significant increase in credit growth following the implementation of capital regulations, in general. Despite higher capital …
Persistent link: https://www.econbiz.de/10011142023
<i>Global Credit Review</i> is an annual publication that provides an overview of the most important developments in global credit markets and the regulatory landscape. The third volume provides some critical analysis, reviews the introduction of new regulations and also offers new insights to address...
Persistent link: https://www.econbiz.de/10011010986
The Basel Committee on Banking Supervision has proposed linking capital requirements for bank loans to ratings by … on overall debt service capacity depreciations are normally supposed to have. Simulations show that linking capital … run up to the crises. Simulations suggest modest efficiency gains of using sovereign credit ratings for capital …
Persistent link: https://www.econbiz.de/10005264127
' headline capital ratios underestimate their capital strengths. Given their high capital quality and the progress in their …' capital. Therefore, it would be useful to consider the merits of higher capital requirements for systemically important …
Persistent link: https://www.econbiz.de/10009650628