• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

China Business Opportinuty

Extracts from this document...

Introduction

Basel II A round of deliberation took place in Basel, Switzerland. Carried out by the central bankers around the world I.e. the Basel committee published a set of minimum requirement of capital for a bank. This agreement is known as the Basel accords, it was implemented by law in the G10 countries, which are the countries who have a general agreement on borrowing. In nearly all these countries the central bankers have responsibilities in terms of managing banking regulations and financial markets. By enforcing the Basel accords within the banking sector in the G10 countries, it has structured various approaches banks can use in terms of dealing with the credit risk to some degree. Basel aims to classify and group all banks assets into five categories of credit risk. Basel II was the second of the published accords by Basel central committee on banking supervision. There was need to build a frame work which deals with risk management, particularly in terms of borrowing, banks needed an international platform that they can rely on to operate their lending and borrowing safe and soundly on an international level. ...read more.

Middle

Basel II has provided banks with more robust risk sensitive approach for assessment of banking organisations (K Ott, Basel Briefing 13); It requires an examination of the off balance sheet instruments such as liquidity facilities and the effectiveness of risk transfer. The Pillar II in particular provides a scope for a through firm wide view of risk considering and internal and external factors. Basel II has not only helped banks to develop more risks sensitive measurements but also helped link risk assessments methods with business and operational use incorporated. The pillar iii in the Basel accords the aims to do disclosure of information with banks aim to improve market forces driving towards improve overall risk management. The Basel trading book review introduction has enhanced guidance to provide clarity around the eligibility of instruments for trading books, with a revised focus on the liquidity of underlying positions and the ability to price them effectively. Banks can take advantage of new approaches and make use of more sophisticated risk measurements systems. ( R Varadachari) Hence by putting in place approved risk measurement models the banking world has developed more confidence in dealing with risk management. ...read more.

Conclusion

In sense all this will lead to assess to capital markets and banks operating effectively. Overall Basel ii has been a milestone in the risk management world, banks now using innovative ways to measure risks and market value to avoid unexpected losses. Reference Benink & Kaufman- Financial Times publication, 2 Feb 2008, Turmoil reveals the inadequacy of Basel II, By Heralds Blink and Gorge Kaufman. Basel Briefing 13 KPMG-, 13th edition Jan 08, financial services, Report - Basel Implementation worldwide. Jorg Hashagen. G Haber - International Atlantic Economic Society, Title- Basel II, International Competition Issues. By Gottfried Haber. Nout Wellink- The Banker (article) a robust framework for risk management, 2008 Feb 1 FT Publications. Pingaley and Kiran- The Banker, artice, Basel II Ease the Path To compliance. FT Publications 2005. Ravi- Varadachari- Special supplement, Banks that try to plan and comply with Basel II Advance approaches can use them for strategic decision. FT publications2005. P Larsen - Financial times article, Banking regulators call for clean state, Oct 17 2008. T Congdon- Northern Rock shows up mess of Basel rules, telegraph 29th Jan 2008. Hans Helbekkmo - The ripple Effect: how Basel will impact institution of all sizes. E Risk Holdings 2005 Pg 7, 9 ?? ?? ?? ?? Risk Management 1 Ninad Pattalwar ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Virgin Atlantic PESTLE analysis.

    and as for Virgin Atlantic are always looking for new members of staff they would be more likely to employee some of the unemployed. Energy prices will affect Virgin Atlantic because they need to use oil and gas all the time as they are flying planes to various destinations all the time.

  2. The Impact of Migration on the Reduction of Poverty

    Migrant remittances represent the sum across from all remitters including the dollar-denominated remittances from the U.S. To enable summing it up with the local income, they have been converted into Pesos using the then (2002)

  1. NHS change management

    On the other hand, SWOT analysis by Edmund et al. in 1960s gives a framework for generating strategic option in a given situation. These two analyses will highlight the factors that trigger the firms to modify and change. Below is the PEST and SWOT analysis for the NHS to reach

  2. PEST is a planning tool which is used by a business to evaluate and ...

    However if the temperature of a fridge rise between 40 to 140�F this can be very dangerous, as in this temperature bacteria thrives, this means the meat will be dangerous to eat. This will affect Ginsters as they will need to ensure that there products are kept in a fridge

  1. Unit 9: Marketing Strategy

    Having identified this, I will need to choose a marketing warfare strategy. The four main marketing warfare strategies are: * Offensive - This focuses on strategies which are designed to attack competitors head on, it deliberately targets customers of competing businesses focusing on the theory that they could be won over by a superior deal.

  2. Comparison of the Honda & General Motors in terms of internationalisation theory

    per annum this alliance has the capacity to strengthen their bargaining power as well as reducing the supplier management cost. GM also moved production overseas as there were too many competing in the home markets. GM needed to find new incentive to manage a new market with low cost.

  1. Business plan. The business that I am going to produce is a personalised logo ...

    there will be a small amount of risk, but this is no threat as any business starting up has risks. I only have a small loan so the risk is not very high. However if my business is successful over time and manages to expand then In the future will

  2. International Business. Tescos in the UK and China The Economic Environment Facing ...

    Levels of Inflation Due to China?s high levels of economic growth China?s government are trying to keep the level of inflation as low as possible. Chinas inflation rate was calculated at 4.2% in November this year which is higher than they would like it to, however their GDP is at 9.4% which means there is a positive gap of 5.2%.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work