6,452 research outputs found
What do Basel Capital Accords mean for SMEs?
Full text linkThis paper analyses the impact of the new Basel Capital Accords (Basel II and Basel III) on the bank’s capital requirements in a portfolio of Small and Medium-sized Enterprises (SMEs) when the internal ratings-based (IRB) approach is used. To do this, the study uses a large database of Spanish firms and covers the period from 2005 to 2009. We also examine the effect on the credit risk premium charged by banks of the guarantee offered by a Loan Guarantee Association (LGA) to a SME; and whether this foreseeable decrease in the interest rates applicable to the SME is compensated by the cost of this guaranteeBank capital requirements, Credit risk mitigation, Bank financing of SMEs, Basel II, Basel III Loan Guarantee Association
Rebalancing the three pillars of Basel II
Full text linkThe author observes that the three pillars of Basel II seem uneven: Pillars 1 and 2 have eclipsed Pillar 3 - market discipline and disclosure - in the Basle Committee's deliberations. He works through a banking model of the three Pillars, shows how the optimal liquidation limit varies with bank liability structure and the regulatory regime, and argues that market discipline, via mandatory subordinated debt issuance, can reduce forbearance by supervisors.Bank supervision ; Bank capital ; Banking law
Cost implications of compliance with Basel III and competitiveness of internationally active banks
No full textThis dissertation investigates the third Basel Accord designed to provide a global regulatory standard on bank capital adequacy, stress testing and agreed market liquidity risk. Amongst other requirements, Basel III expects banks to hold top quality capital totalling 9.5% of their risk bearing assets by January 2019. Any bank that fails to meet the new requirements is expected to be banned from paying dividends to shareholders until it has improved its balance sheet. Full compliance with Basel III is expected to kick in by 2019. The author suggests that this new regulatory frame is arguably the most topical issue today amongst internationally active banks as they plan to be compliant, with the market already applying a multiple discount to banks with weaker capital positions especially the systemically important banks
REVISING BASEL 2: THE IMPACT OF THE FINANCIAL CRISIS AND IMPLICATIONS FOR DEVELOPING COUNTRIES
Full text linkThis paper is concerned with the following aspects of Basel 2, the new internationally agreed framework for assessing the capital adequacy of banks: (1) its rationale and origins; (2) the process leading to the agreement, including the way in which problems and criticisms which emerged during drafting were handled; (3) data on the introduction of Basel 2 in different countries; (4) the quantitative exercises designed to estimate Basel 2’s effects; (5) the global pattern of introduction in relation to Basel 2’s objectives; (6) the way in which Basel 2 addresses the control of banking risks; and (7) outstanding issues requiring regulatory reform which have been highlighted by the financial crisis and which are either covered by or closely related to the rules of Basel 2. The paper devotes much attention to the challenges to regulation and banks’ role in economic development which are posed by its widespread introduction in emerging-market and other developing countries.
Plagiarism detection and prevention techniques in engineering education
No full textPlagiarism seriously damages the education process in a number of ways; it prevents students from developing the skills of creative thinking and critical analysis; it undermines the trust between lectures and students, and if goes undetected, it can impact the reputation of the academic institution and devalue its degrees. In this paper, we present two techniques for plagiarism detection and prevention. The first method is based on the allocation of a unique assignment for each student, and the second approach is based on the use of individual presentation of coursework findings. These techniques are applied to three courses at the Master level in the University of Southampton, where we show that they are effective at reducing plagiarism and improving students’ understanding
Design and evaluation of plagiarism prevention and detection techniques in engineering education
No full textHigher education students are expected to develop critical analysis and creativethinking skills, where plagiarism can damage the development of these skills inaddition to damaging the whole education process and experience. Furthermore,plagiarism undermines the trust between the lecturers and students and the reputation of the academic institutions can be affected if plagiarism is not considered seriously, where the degrees offered by these institutions can be devalued. In this paper, two plagiarism prevention techniques followed by two plagiarism detection techniques used in the engineering education in the University of Southampton are presented. The plagiarism prevention techniques presented are based on assigning individual coursework specifications to students and the use of individual presentation of coursework findings. Then, the plagiarism detection techniques are based on detecting the writing styles of students and testing the student' codes in different configurations
Dr. Della Dumbaugh and Basel Arafat - Faculty-Student Author Interview
No full textDr. Della Dumbaugh, Professor of Mathematics and Mathematics Coordinator at the University of Richmond, and Basel Arafat, a senior studying mathematics, computer science and cognitive science, discuss a recent co-authored article entitled, “The Genesis of Americanmathematics.org: A Global Classroom Experience” in the August/September 2019 issue of MAA (Mathematical Association of America) Focus. The article describes the development of American mathematics.org, a website dedicated to American mathematics
BASEL II: THE REVISED FRAMEWORK OF JUNE 2004
Full text linkA major aim of Basel II has been to revise the rules of the 1988 Basel Capital Accord in such a way as to align banks´ regulatory capital more closely with their risks, taking account of progress in the measurement and management of risk and of the opportunities which these provide for strengthened supervision. Achievement of this aim has involved the incorporation in Basel II of methods for quantifying banking risks introduced since the late 1980s. The task of the designers of Basel II has been complicated by the way in which the BCBS´s rules for banks´ capital, originally intended for the internationally active banks of its member countries, have become a global standard widely applied in developing as well as developed countries. Acceptance of this role by the BCBS has entailed a global consultation process, whose results have been reflected in three consultative papers and the RF, and the different approaches and options for setting numerical capital requirements which are intended to accommodate banks and supervisors of different levels of sophistication. As well as providing a commentary on the main features of the RF this paper documents the response of the BCBS to some of the more important points which were raised during this consultation process, including the outcome of decisions taken at a meeting in Madrid in October 2003 following comments on the consultative paper of April 2003, and summarises the results of the most recent of the BCBS´s initiatives to estimate the quantitative impact of the Basel II rules on banks´ capital. This discussion includes a review of papers issued by the BCBS as part of the last stage of its work preceding the RF.
Credit risk mitigation and SMEs bank financing in Basel II : the case of the Loan Guarantee Associations
Full text linkThe objective of this paper is to analyse the impact of the techniques foreseen in the Basel Agreement II
(BII) for mitigating the risk of default on bank loans to small and medium enterprises (SMEs). In particular, we
will conduct an analysis of the effect of the guarantees that the Loan Guarantee Association (LGA) offer to the
SMEs on the assignment of capital requirements of the financial entities under BII. At the same time, the study
will examine the effect of this guarantee on the credit risk premium that the financial entities should charge
their clients, and whether this foreseeable decrease in the interest rates applicable to the SMEs is compensated
by the cost of the guarantee.
The results show that, considering that the cost of the LGA guarantee in Spain is around 0.68%, it will
be advantageous for an SME with the annual sales of less than or equal to €5 million to request this guarantee
whenever the probability of default (PD) of the LGA is <1.1%, if the approach utilised by the financial entity is
the Internal Ratings-Based (IRB) and the SME is considered as corporate; however, if the SME is included in a
regulatory retail portfolio, then the limit for the PD of the LGA decreases to 0.71%. On the other hand, when
the approach utilised is the Standardised one, then will be profitable for an SME treated as retail to request this
guarantee whenever the PD of the LGA is <3.35% (3.95% for corporate exposures)
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