scholarly journals Analysis of preparation process for Basel II implementation in Czech banks

2005 ◽  
Vol 53 (3) ◽  
pp. 95-108
Author(s):  
Miroslava Mastná
Keyword(s):  
Capital Requirements ◽  
Basel Ii ◽  
Capital Adequacy ◽  
Current Phase ◽  
International Capital ◽  
Banking Supervision ◽  
The Czech Republic ◽  
Basel Committee ◽  
It Systems ◽  
Building Societies

In June 2004 the Basel Committee on Banking Supervision published the new capital adequacy framework commonly known as Basel II. Basel II contains international capital standards for banking organizations and will replace the relatively risk-invariant requirements in the current Basel I accord. The Committee intends Basel II to be available for implementation as of year-end 2006. The goal of this paper is to analyze the current situation in bank preparation for Basel II in the Czech Republic. For this reason a survey was done in the Czech banks in September and October 2004. Results of this survey are subject of this article. Results are separately discussed for four groups of banks (according to balance sum) – large, middle and small banks and building societies. The research is divided into three sections. The first section is concentrated on the current phase of preparation of Czech banks for Basel II. Results of this section showed that large banks are best prepared in comparison to other three groups of banks. The goal of the second section of the research was to find out how banks evaluate difficulty of activities connected with implementation of Basel II. Problems are mostly connected with changes in IT systems and lack of data. The goal of the third section was to find out which approach for calculating capital requirements on credit risk are banks most likely to adopt at the Basel implementation date. Majority of banks is most likely to adopt the Standardised approach.

scholarly journals Znaczenie agencji oceniających (ratingowych) po wprowadzeniu w 2004 roku przez Komitet Bazylejski Nowej Umowy Kapitałowej

2004 ◽  
pp. 101-112
Author(s):  
Monika Gładysz
Keyword(s):  
Capital Requirements ◽  
Capital Adequacy ◽  
Special Importance ◽  
Banking Supervision ◽  
External Assessment ◽  
Minimum Capital ◽  
Basel Committee

Basel Committee on Banking Supervision published in 2004 the New Capital Adequacy Framework. A special importance is assigned in this document to the external assessment agencies. Banks will have to determine the minimum capital requirements on the basis of assessments by the external agencies. The role of the external assessment agencies in the New Capital Adequacy Framework and potential threats and benefits from using by banks the external assessments for determination of the. minimum capital requirements are presented in the paper.

Islamic Banking Regulations in Light of Basel II

2010 ◽  
Vol 27 (1) ◽  
pp. 74-101 ◽  
Author(s):  
M. Kabir Hassan ◽  
Muhammad Abdul Mannan Chowdhury
Keyword(s):  
Financial Institutions ◽  
Banking Regulation ◽  
Capital Requirements ◽  
Basel Ii ◽  
Capital Adequacy ◽  
Regulatory Agencies ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Minimum Capital ◽  
Regulatory Standards

This paper seeks to determine whether the existing regulatory standards and supervisory framework are adequate to ensure the viability, strength, and continued expansion of Islamic financial institutions. The reemergence of Islamic banking and the attention given to it by regulators around the globe as to the implications of a recently issued Basel II banking regulation makes this article timely. The Basel II framework, which is based on minimum capital requirements, a supervisory review process, and the effective use of market discipline, aligns capital adequacy with banking risks and provides an incentive for financial institutions to enhance risk management and their system of internal controls. Like conventional banks, Islamic banks operate under different regulatory regimes. The still diverse views held by the regulatory agencies of different countries on Islamic banking and finance operations make it harder to assess the overall performance of international Islamic banks. In light of the increased financial innovation and diversity of instruments offered in Islamic finance, the need to improve the transparency of bank operations is particularly relevant for Islamic banks. While product diversity is important in maintaining their competitiveness, it also requires increased transparency and disclosure to improve the understanding of markets and regulatory agencies. The governance of Islamic banks is made even more complex by the need for these banks to meet a set of ethical and financial standards defined by the Shari`ah and the nature of the financial contracts banks use to mobilize deposits. Effective transparency in this area will greatly enhance their credibility and reinforce their depositors and investors’ level of confidence.

Islamic Banking Regulations in Light of Basel II

2010 ◽  
Vol 27 (1) ◽  
pp. 74-101
Author(s):  
M. Kabir Hassan ◽  
Muhammad Abdul Mannan Chowdhury
Keyword(s):  
Financial Institutions ◽  
Banking Regulation ◽  
Capital Requirements ◽  
Basel Ii ◽  
Capital Adequacy ◽  
Regulatory Agencies ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Minimum Capital ◽  
Regulatory Standards

This paper seeks to determine whether the existing regulatory standards and supervisory framework are adequate to ensure the viability, strength, and continued expansion of Islamic financial institutions. The reemergence of Islamic banking and the attention given to it by regulators around the globe as to the implications of a recently issued Basel II banking regulation makes this article timely. The Basel II framework, which is based on minimum capital requirements, a supervisory review process, and the effective use of market discipline, aligns capital adequacy with banking risks and provides an incentive for financial institutions to enhance risk management and their system of internal controls. Like conventional banks, Islamic banks operate under different regulatory regimes. The still diverse views held by the regulatory agencies of different countries on Islamic banking and finance operations make it harder to assess the overall performance of international Islamic banks. In light of the increased financial innovation and diversity of instruments offered in Islamic finance, the need to improve the transparency of bank operations is particularly relevant for Islamic banks. While product diversity is important in maintaining their competitiveness, it also requires increased transparency and disclosure to improve the understanding of markets and regulatory agencies. The governance of Islamic banks is made even more complex by the need for these banks to meet a set of ethical and financial standards defined by the Shari`ah and the nature of the financial contracts banks use to mobilize deposits. Effective transparency in this area will greatly enhance their credibility and reinforce their depositors and investors’ level of confidence.

„Qualitative“ Bankenaufsicht – „Königsweg“ der Regulierung?

2000 ◽  
Vol 1 (3) ◽  
pp. 281-299 ◽  
Author(s):  
Stephan Paul
Keyword(s):  
Risk Management ◽  
Banking Regulation ◽  
Capital Requirements ◽  
Capital Adequacy ◽  
First Century ◽  
Bank Risk ◽  
Management Systems ◽  
Banking Supervision ◽  
Minimum Capital ◽  
Proposal A

Abstract Banking regulation in the twenty-first century is at the crossroads. The article discusses the question whether the supervisory review of bank risk management systems is superior to the minimum capital requirements in traditional style. It points out the serious problems of both ways - especially the first one, which was preferred by the Basle Committee of Banking Supervision in its proposal ,,A new capital adequacy framework`` (June 1999).

Basic Requirements Of The Basel Committee On Regulating Capital Adequacy And Liquidity Of Commercial Banks

2012 ◽  
Vol 4 ◽  
Author(s):  
Bahriddin Berdiyarov
Keyword(s):  
Risk Assessment ◽  
Commercial Banks ◽  
Basel Ii ◽  
Capital Adequacy ◽  
Basel Iii ◽  
Basel Committee ◽  
Performance Quality ◽  
Regulatory Standards ◽  
Loan Risk ◽  
Credit Risk Measurement

The current paper highlights theBaselI, Basel II & Basel III requirements on capital adequacy and liquidity of commercial banks.  In the paper, Basel II structure, methods of loan risk assessment, coefficients of loan risk assessment, credit risk measurement for counterparty banks are discussed.  Moreover, assessments of Basel III on bank chances against crisis driven from financial and economic crunches, risk management, performance quality and bank transparency improvement measures are presented.  At the end, the author gives his conclusions on the essence and necessity of new regulatory standards of the Basel Committee on bank’s supervision in the structure of the supervision of credit institutions.

scholarly journals Issues inzake Basel II

2005 ◽  
Vol 79 (1) ◽  
pp. 25-32
Author(s):  
H. A. Benink
Keyword(s):  
Basel Ii ◽  
Banking Supervision ◽  
Basel Committee

Op 26 juni 2004 publiceerde het Basel Committee on Banking Supervision het lang verwachte Basel II Akkoord. In dit artikel zal een overzicht worden gegeven van de belangrijkste punten van Basel II en zullen enkele actuele issues worden besproken. Het zal blijken dat Basel II belangrijke positieve incentive-effecten genereert die banken ertoe aanzet hun meting van kredietrisico te verfijnen via het gebruik van geavanceerde risicomanagementsystemen. Tegelijkertijd zal in dit artikel worden beargumenteerd dat Basel II bij sommige banken prikkels kan creëren om het kredietrisicoprofiel te overoptimistisch in te schatten ten einde de vereiste hoeveelheid eigen vermogen te reduceren en dat er redelijk grote onzekerheid lijkt te bestaan ten aanzien van de betrouwbaarheid van de interne risicomodellen. Het recente Basel II Akkoord vertrouwt met name op de toezichthouders om genoemde effecten van verkeerde inschatting van kredietrisico te mitigeren. In dit artikel zal deze benadering als te eenzijdig worden aangemerkt en zal worden bepleit om de risico-inschatting van de toezichthouders te complementeren met de risico-inschatting van professionele beleggers op financiële markten. Hiertoe is een geloofwaardiger invulling van de marktdiscipline (‘pillar 3’ van het Akkoord) vereist. Ten slotte zal in dit artikel aandacht worden besteed aan de consequenties van Basel II voor de bereidheid van banken om leningen te verstrekken aan ondernemingen, en het MKB in het bijzonder, en aan de mogelijke procyclische werking van Basel II.

8. Micro-prudential regulation I

2019 ◽  
pp. 329-406
Author(s):  
Iris H-Y Chiu ◽  
Joanna Wilson
Keyword(s):  
Financial Crisis ◽  
Risk Taking ◽  
Global Financial Crisis ◽  
Basel Ii ◽  
Capital Adequacy ◽  
Basel Iii ◽  
Prudential Regulation ◽  
Basel Committee ◽  
The Global Financial Crisis ◽  
Capital Adequacy Regulation

This chapter studies capital adequacy regulation, which prescribes that banks can only take certain levels of risk that are supported by adequate levels of capital. In this way, capital adequacy rules provide a form of assurance that banks with adequate levels of capital are likely able to withstand losses that may result from their risk-taking. The Basel Committee developed its first set of capital adequacy standards in the Basel I Capital Accord of 1988. It was subsequently overhauled into the Basel II Capital Accord in 2003. After the global financial crisis of 2007–9, the Basel II Accord’s shortcomings were extensively discussed and the Basel Committee introduced a package of reforms in order to plug the gaps in Basel II. The Basel III package is the most extensive suite of micro-prudential regulation reforms seen to date, as they deal with capital adequacy and a range of other micro-prudential standards.

scholarly journals Calculating capital requirements for operational risk

2021 ◽  
Vol 22 (1) ◽  
Author(s):  
Gerd Waschbusch ◽  
Sabina Kiszka
Keyword(s):  
Financial Crisis ◽  
Operational Risk ◽  
Capital Requirements ◽  
Banking Supervision ◽  
Future Measurement ◽  
Basel Committee ◽  
Operational Risks ◽  
Increased Risk ◽  
Risk Potential ◽  
Measurement Approach

Operational risks have become increasingly important for banks, especially against the background of growing IT dependency and the increasing complexity of their activities. Further-more, the corona pandemic contributed to the increased risk potential. Therefore, banks have to back these risks with own funds. There are currently three measurement approaches for determining the capital requirements for operational risk. In recent years, and especially during the Great Financial Crisis of 2007/2008, however, some of the weaknesses inherent in these approaches have become apparent. Thus, the Basel Committee on Banking Supervision revised the current capital framework. Therefore, this article examines the various measurement approaches, addresses inherent weaknesses and moreover, presents the future measurement approach developed by the supervisory authorities.

scholarly journals Bank Soundness and Sustainability-Evidence From Middle East, Indian Sub-Continent and African Banks

IKONOMIKA ◽  
2018 ◽  
Vol 3 (1) ◽  
pp. 97
Author(s):  
Abdul Razak Abdul Hadi1 ◽  
Tulus Suryanto ◽  
Eddy Yap Tat Hiung
Keyword(s):  
Middle East ◽  
Risk Premium ◽  
Default Risk ◽  
Indian Subcontinent ◽  
Capital Adequacy ◽  
Banking Supervision ◽  
Return On Assets ◽  
Basel Committee ◽  
Capital Adequacy Ratio ◽  
Loan Growth

ABSTRACTThe study is carried out with the objective of examining the effects of bank’s liquidity (LR), non-performing loans (NPL), capital adequacy ratio (CAR), loan growth (FEXP) and default risk premium (FQL) on bank’s performance as measured by return on assets (ROA) within the framework of Basel Committee on Banking Supervision.The financial intermediation theory of banking is reexamined to see how the current banking supervision safeguards the interest of depositors.  Engaging pooled OLS as an estimation tool on 93 commercial banks in Middle East, Africa and Indian subcontinent over study period from 2009 through 2016, the findings reveal thatthere are significant relationships between bank’s performance and its liquidity plus loan growth.  Both ROA and FEXP are also found to be positively correlated.  Even though NPL and CAR do not have significant relationship with ROA, both are found to be negatively correlated with ROA.  Overall, the study has proven that liquidity and loan growth have pivotal roles in sustaining bank’s profitability over time.   Keywords: Bank’s Liquidity, Return on Assets,Capital Adequacy Ratio, Non-Performing Loans, Loan Growth, Static Panel Data, PooledOLS and Basel Committee on Banking Supervision.

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