• 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.

    standard of living; they find it hard to find new jobs as skills are always changing. They will affect the economy because the government will receive less money from unemployed people and in turn affect the amount of money they have to spend on other things such as if a

  2. How Evans Enterprise party and wedding planners could use IT to help manage their ...

    * Voice mail is another popular way of communicating, mainly in the business itself. If a member of staff is busy or else away from his or her workstation, the caller can simply leave a message and the recipient can either listen to the message, or call the sender back once appropriate.

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

    If a individual group of people want to set up a business, another option is the formation of a limited company. If my business was to grow and become a Ltd, it would be very different from being a sole trader or being involved in a partnership as it can save the owner a lot of money.

  2. Unit 9: Marketing Strategy

    cards can increase the amount of loyal customers held by a business. R I feel that this is a realistic target as my chosen market segment should react well to loyalty vouchers. T This target is not time related as it does not specify how long the business should be

  1. Developing a business idea

    We had different reasons for this. I have a friend who owns a shop and he also sells I.D string. He would have got the I.D strings for us as a whole sale, with different types of designs and for very cheap in price.

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

    Another disadvantage of PEST is that society is constantly changing this means that it is increasingly difficult to anticipate developments that may affect a business in the future. Another disadvantage to a business of using PEST analysis is that PEST only covers the external environment, this means that there are

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

    China has newly industrialised growth and their economy is growing fast and is well above the trend rate. Tesco?s have been operating in China since 2004 and now has over 105 stores. Tesco?s have chosen to suit China?s market by building hyper stores which are big supermarkets which can sell

  2. LEGO's Management Accounting Decision

    of strategic cost analysis is to better manage linkages with buyers and suppliers in the value chain. A value chain is defined as ?the linked set of value-creating activities all the way from basic raw material sources for component suppliers through the ultimate end-use product delivered into the final customers? hands? (Shank, 1989, p.

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