Consequences of basel II for small and mid-sized enterprises (PDF)

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 possibilities for SMEs44
4.5.1Effects on banks45
4.5.2Effects on interest rates for SMEs46
4.6Possibilities for SMEs to prepare for Basel II48
4.6.1Implementation of a value-based management50
5.CONCLUSION55
6.APPENDIX57
6.1Index of Abbreviations57
6.2Index of Literature58