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Article: Basel II and the survival of the SME: are lenders and borrowers ready to comply with Basel II? (International Affairs Section).(Basel II Accord on capital adequacy, small- and medium sized companies)
- Article from:
- Business Credit
- Article date:
- November 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The Basel II Accord on capital adequacy has triggered a fundamental change in the attitude of banks towards borrowers, especially small- and medium sized companies (SMEs). Banks are reviewing their portfolios today along the lines of the criteria laid down by Basel II, although the accord will not go into effect before 2005. The criteria will be in the form of a bank internal rating, which is designed to permit a more accurate assessment of the true risk of a loan. At issue is that firms, which are to be rated, are not familiar with the new formal rating process. Bank or credit managers do not always have good insights into the economics of SMEs to be able to accurately ...
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Article: Basel lite; Bank capital adequacy.(Less ...
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... ... seal of approval on Basel 2, a new capital-adequacy framework for banks ... bank supervisors, Basel 2 is supposed to relate ... there is a snag. Basel 2 is being translated ... Directive and the Capital Adequacy Directive should be ...
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