IMPACT OF BASEL COMMITTEE STANDARDS ON BANKS IN DEVELOPING COUNTRIES
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IMPACT OF BASEL COMMITTEE STANDARDS ON BANKS IN DEVELOPING COUNTRIES
Annotation
PII
S0207-36760000596-4-1
Publication type
Article
Status
Published
Edition
Pages
116-129
Abstract
Methods of the Basel committee are used by banks in our day widely and it is turned to more point at issues. From this cause in the article have been worked to give information about standard methods of Basel II in managing of the credit risks and some similarity and differences between Basel I and Basel II standards. In credit risk management IRB approach of Basel II standards shows harder relation in comparison with standard approach. So, credits with high ratings need more below capital, credits with not satisfactory ratings need more higher capital. After application of Basel II standard, if we take into account that as much as part bank actives have higher rating credits in the developed countries, the credit opportunities will more increase in this countries. But developing countries will use standard approach of Basel II standard in the first stage and are expected that capital demand will increase the from the reason of having not satisfactory rating level of the credit portfolio. We have to note that crises in 2006-2008 have increased the need for Basel II, because the developed methods can evaluate risk and estimate loss for each loan in total loan portfolio.
Keywords
standarty Basel I and Basel II, standard method, crisis, the level of risk and possible losses, assessing credit, IRB (method of internal evaluation)
Date of publication
01.04.2010
Number of purchasers
0
Views
449
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0.0 (0 votes)
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