Consequences of Basel II for Small and Mid-sized Enterprises
Author | : Björn Schlüter |
Publisher | : Diplom.de |
Total Pages | : 68 |
Release | : 2002-06 |
ISBN-10 | : 3838655583 |
ISBN-13 | : 9783838655581 |
Rating | : 4/5 (581 Downloads) |
Download or read book Consequences of Basel II for Small and Mid-sized Enterprises written by Björn Schlüter and published by Diplom.de. This book was released on 2002-06 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: Scholarly Research Paper from the year 2002 in the subject Business economics - Investment and Finance, grade: 1,3, Hogeschool Zeeland (unbekannt), language: English, abstract: Inhaltsangabe: Abstract: At present, rating is the number-one-topic discussed, both within the banking community and also, even more frequently, at enterprises. The second consultative package of the Basel Committee for Banking Supervision provides a basic change in equity capital contribution of banks. It is expected to change the rules of the credit business with institutional customers considerably. As a result, especially small and mid-sized enterprises are forced to enhance their credit standing in order not to struggle with the serious consequences of Basel II. This case study shows how! Inhaltsverzeichnis: Table of Contents: 1.INTRODUCTION4 1.1Overview4 1.2Definition of the new Basel Capital Accord4 1.3Targets5 1.4Structure5 2.BASICS6 2.1Small and mid-sized Enterprises (SMEs)6 2.1.1Definition of SMEs6 2.1.2EconomicSituation andImportance ofSMEs7 2.2Rating7 2.2.1Credit ratings7 2.2.2External ratings by rating agencies8 2.2.3Bank-internal ratings9 2.2.4Function of credit ratings10 2.2.5Rating procedure and structure12 2.2.6Rating as an opportunity to prepare for Basel II16 3.BASEL II - THE NEW BASELCAPITAL ACCORD18 3.1The Basel Committee of Banking Supervision18 3.2The way from Basel I to Basel II18 3.3Overview of the new Capital Approach19 3.3.1The first Pillar: Minimum Capital Requirements19 3.3.1.1In context of granting credits to small and mid-sized companies23 3.3.1.2Possibilities of asset securitisation26 3.3.2The second Pillar: Supervisory Review Process27 3.3.3The third Pillar: Market Discipline27 4.THE CONSEQUENCES OF BASEL'S RESOLUTIONS29 4.1Current financial requirements of the small to medium-sized business sector29 4.2Internal vs. external rating of SMEs31 4.3Actual preparation status of SMEs35 4.4Rating under aspects of Investor Relations42 4.5Alternative financing possibil