Assessment of Credit Risk Approaches in Relation with Competitiveness Increase of the Banking Sector
Journal Title: Journal of Competitiveness - Year 2012, Vol 4, Issue 2
Abstract
The article is focused on a presentation and analysis of selected methods of credit risk management in relation with competitiveness increase of the banking sector. The article is defined credit risk approaches under the Basel III gradually. Aim of this contribution constitutes various methods of credit risk management and effects of their usage on regulatory capital amount in respect of corporate exposures. Optimal equity amount in relation to the risk portfolio presents an essential prerequisite of performance and competitiveness growth of commercial banks. Gradually capital requirements using Standardized Approach and Internal Based Approach in a case of used and unused techniques of credit risk reduce has been quantified. We presume that sophisticated approach means significant saving for bank’s equity which increases competitiveness of banking sector also. Within the article, quantification of capital savings in case of Standardized (with and without assigned external ratings) and Foundation Internal Based Approach at the selected credit portfolio has been effected.
Authors and Affiliations
Eva Cipovová, Jaroslav Belás
Keywords
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- EP ID EP124935
- DOI 10.7441/joc.2012.02.05
- Views 134
- Downloads 0
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