In: Ekonomický časopis/Journal of Economics, vol. 56, no. 3
Vita Jagric - Timotej Jagric - Boris Podobnik
Details:
Year, pages: 2008, 296 - 310
Keywords:
Basel II, credit risk, market risk, operational risk, capital definition
JEL Classification: G21, G28, G32
Article type: Vedecký / Article
About article:
In the paper we tried to estimate the implications and consequences of Basel II for Slovenian banking sector just before its implementation. Our survey indicates that a lot of the Basel II impacts are actually unclear to the banks and even to the regulator. The impact on individual institutions will be driven by their level of sophistication in risk management. Banks claim that implementation of the International Rating Based (IRB) approach requires large initial investments in risk management technologies from the cost perspective as well from the knowledge and data gathering. This could deter small banks from choosing the IRB approach.
In the paper we tried to estimate the implications and consequences of Basel II for Slovenian banking sector just before its implementation. Our survey indicates that a lot of the Basel II impacts are actually unclear to the banks and even to the regulator. The impact on individual institutions will be driven by their level of sophistication in risk management. Banks claim that implementation of the International Rating Based (IRB) approach requires large initial investments in risk management technologies from the cost perspective as well from the knowledge and data gathering. This could deter small banks from choosing the IRB approach.
How to cite:
ISO 690:
Jagric, V., Jagric, T., Podobnik, B. 2008. Implications and Consequences of Basel II for Slovenian Banking Sector. In Ekonomický časopis/Journal of Economics, vol. 56, no.3, pp. 296-310. 0013-3035.
APA:
Jagric, V., Jagric, T., Podobnik, B. (2008). Implications and Consequences of Basel II for Slovenian Banking Sector. Ekonomický časopis/Journal of Economics, 56(3), 296-310. 0013-3035.