Günter Hofbauer1, Aleksandra Nocoń2, Monika Klimontowicz2

(1. Technische Hochschule Ingolstadt, Germany; 2. University of Economics in Katowice, Poland)

 

 

Abstract: The new equity regulations of Basel III will not only have an impact on banks, but also on credit taking companies, especially small and medium-sized enterprises (SME). In this article we will give an overview of the relevant regulations of the Basel framework and display the effect on small and medium sized enterprises. The banks will have a closer look at the companies, especially at the risks taken in the business in order to calculate a risk adequate interest rate. A backward looking statement from the balance sheet or profit and loss statement will not be sufficient anymore. We propose an evidence-based approach for executing the credit rating.

 

 

Key words: Basel capital accord; Basel III; capital adequacy ratio; equity regulation; liquidity coverage ratio;

net stable funding ratio; leverage ratio; credit; risk

 

JEL codes: G20, G28, M20, M48