Comparison of Assessment of Capital Adequacy for Czech Commercial Bank
Comparison of Assessment of Capital Adequacy for Czech Commercial Bank

Author(s): Miroslav Červenka, Eva Cipovová, Angelika Stupková, Roman Hlawiczka
Subject(s): Business Economy / Management, Economic policy, Evaluation research
Published by: Masarykova univerzita nakladatelství
Keywords: Basel III; Standardized Based Approach without external rating; Foundation Internal Rating Based Approach; Probability of default; credit risk management;
Summary/Abstract: The contribution is dealing with selected assessments of the most important risk in the banking sector in the Czech Republic. The aim of this article is calculate, compare capital requirements and calibrate effective portfolio of business loans regarding to the optimal amount of the final capital adequacy of the given commercial bank in the Czech Republic. Paper is focused on the credit risk management where the evaluation of the capital adequacy with using Standardized Based Approach (STA approach) with external rating and Foundation Internal Rating Based Approach (IRB approach) methodology of legislative framework of Basel III is used.

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