Basel III Equity Requirements and a Contemporary Rating Approach

Basel II : Capital Requirements for Equity Investment Portfolios

The Basel Accords represent landmark financial agreements for the regulation of commercial banks. The main purpose of the accords was to strengthen the soundness and stability of the international banking system by providing a minimum standard for capital requirements. In 2004, the Basel Committee proposed new guidelines, which have become known as Basel II. We give a short overview of the Base...

Operational risk : A Basel II++ step before Basel III

Following the Banking Committee on Banking Supervision, operational risk quantification is based on the Basel matrix which enables sorting incidents. In this paper we analyze these incidents in depth and propose strategies for carrying out the supervisory guidelines proposed by the regulators. The objectives are as follows: • On the first hand, banks need to provide a univariate capital charge ...

New Tendencies in Rating SMEs with Respect to Basel II

So far rather weak tendencies towards an infrastructure for external ratings by independent agencies have been observed in Europe in recent decades. Especially for small and mediumsized enterprises (SMEs), thus far there has been no possibility of obtaining an objective rating. The reason is that information is very asymmetric between investors and capital demands on small and medium-sized comp...

Optimizing Basel III Liquidity Coverage Ratios

CHAPTER 1 Supervision of Islamic Banks : The Regulatory Challenge — Basel II and Basel III