The evolution of prudential rules on credit risk management from Basel agreements to IFRS 9
The financing of SMEs by bank credit is the subject of many concerns that have always affected credit institutions. The bank still runs this risk of default, and to cover itself, banking establishments have to apply and comply with the new prudential directives. These new credit risk management regu...
Gespeichert in:
| Veröffentlicht in: | Finance, law, and the crisis of COVID-19 |
|---|---|
| 1. Verfasser: | |
| Weitere Verfasser: | |
| Pages: | 19 |
| Format: | UnknownFormat |
| Sprache: | eng |
| Veröffentlicht: |
2022
|
| Schlagworte: | |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
Tag hinzufügen | Zusammenfassung: | The financing of SMEs by bank credit is the subject of many concerns that have always affected credit institutions. The bank still runs this risk of default, and to cover itself, banking establishments have to apply and comply with the new prudential directives. These new credit risk management regulations were developed to avoid counterparty defaults and to ensure the stability of the entire banking system. It is within this framework of prudential regulation that the Basel Agreements were born, moving from Basel I to BaselII, BaselIII to IFRS 9, the bank will thus be able to manage its risks internally using an approach. Based on the internal rating, to prepare an internal estimate of the probability of default of its customers (occurrence of credit risk). Through this research, we will present the evolution of these prudential rules, with the evolution of credit risk, this will involve the presentation of the new rules of the Basel I agreements and the very first prudence ratio the Cook ratio. In a second step, we will present the dynamic approach to risk management, with the BaselII agreements and its second prudence ratio: the Mc Donough ratio. And finally, the last part will be devoted to the evolution of risk regulations through the transition from BASEL III rules to IFRS and in particular the treatment of IFRS9 for credit risk. |
|---|---|
| ISBN: | 9783030894153 |