Implications and Consequences of Basel II for Slovenian Banking Sector
Implications and Consequences of Basel II for Slovenian Banking Sector
Author(s): Boris Podobnik, Timotej Jagric, Vita JagricSubject(s): Economy
Published by: Ekonomický ústav SAV a Prognostický ústav SAV
Keywords: Basel II; credit risk; market risk; operational risk; capital definition
Summary/Abstract: In the paper we tried to estimate the implications and consequences of Basel II for Slovenian banking sector just before its implementation. Our survey indicates that a lot of the Basel II impacts are actually unclear to the banks and even to the regulator. The impact on individual institutions will be driven by their level of sophistication in risk management. Banks claim that implementation of the International Rating Based (IRB) approach requires large initial investments in risk management technologies from the cost perspective as well from the knowledge and data gathering. This could deter small banks from choosing the IRB approach.
Journal: Ekonomický časopis
- Issue Year: 56/2008
- Issue No: 03
- Page Range: 296-310
- Page Count: 15
- Language: English