Analysis of preparation process for Basel II implementation in Czech banks
In June 2004 the Basel Committee on Banking Supervision published the new capital adequacy framework commonly known as Basel II. Basel II contains international capital standards for banking organizations and will replace the relatively risk-invariant requirements in the current Basel I accord. The...
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| Format: | Article |
| Language: | English |
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Mendel University Press
2005-01-01
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| Series: | Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis |
| Subjects: | |
| Online Access: | https://acta.mendelu.cz/53/3/0095/ |
| _version_ | 1818348986842480640 |
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| author | Miroslava Mastná |
| author_facet | Miroslava Mastná |
| author_sort | Miroslava Mastná |
| collection | DOAJ |
| description | In June 2004 the Basel Committee on Banking Supervision published the new capital adequacy framework commonly known as Basel II. Basel II contains international capital standards for banking organizations and will replace the relatively risk-invariant requirements in the current Basel I accord. The Committee intends Basel II to be available for implementation as of year-end 2006. The goal of this paper is to analyze the current situation in bank preparation for Basel II in the Czech Republic. For this reason a survey was done in the Czech banks in September and October 2004. Results of this survey are subject of this article. Results are separately discussed for four groups of banks (according to balance sum) – large, middle and small banks and building societies. The research is divided into three sections. The first section is concentrated on the current phase of preparation of Czech banks for Basel II. Results of this section showed that large banks are best prepared in comparison to other three groups of banks. The goal of the second section of the research was to find out how banks evaluate difficulty of activities connected with implementation of Basel II. Problems are mostly connected with changes in IT systems and lack of data. The goal of the third section was to find out which approach for calculating capital requirements on credit risk are banks most likely to adopt at the Basel implementation date. Majority of banks is most likely to adopt the Standardised approach. |
| first_indexed | 2024-12-13T17:58:46Z |
| format | Article |
| id | doaj.art-e487a4a24dc3429b928787da50bb52d6 |
| institution | Directory Open Access Journal |
| issn | 1211-8516 2464-8310 |
| language | English |
| last_indexed | 2024-12-13T17:58:46Z |
| publishDate | 2005-01-01 |
| publisher | Mendel University Press |
| record_format | Article |
| series | Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis |
| spelling | doaj.art-e487a4a24dc3429b928787da50bb52d62022-12-21T23:36:17ZengMendel University PressActa Universitatis Agriculturae et Silviculturae Mendelianae Brunensis1211-85162464-83102005-01-015339510810.11118/actaun200553030095Analysis of preparation process for Basel II implementation in Czech banksMiroslava Mastná0Ústav financí, Mendelova zemědělská a lesnická univerzita v Brně, Zemědělská 1, 613 00 Brno, Česká republikaIn June 2004 the Basel Committee on Banking Supervision published the new capital adequacy framework commonly known as Basel II. Basel II contains international capital standards for banking organizations and will replace the relatively risk-invariant requirements in the current Basel I accord. The Committee intends Basel II to be available for implementation as of year-end 2006. The goal of this paper is to analyze the current situation in bank preparation for Basel II in the Czech Republic. For this reason a survey was done in the Czech banks in September and October 2004. Results of this survey are subject of this article. Results are separately discussed for four groups of banks (according to balance sum) – large, middle and small banks and building societies. The research is divided into three sections. The first section is concentrated on the current phase of preparation of Czech banks for Basel II. Results of this section showed that large banks are best prepared in comparison to other three groups of banks. The goal of the second section of the research was to find out how banks evaluate difficulty of activities connected with implementation of Basel II. Problems are mostly connected with changes in IT systems and lack of data. The goal of the third section was to find out which approach for calculating capital requirements on credit risk are banks most likely to adopt at the Basel implementation date. Majority of banks is most likely to adopt the Standardised approach.https://acta.mendelu.cz/53/3/0095/Basel IIBasel Committee on Banking Supervisioncapital adequacycredit riskinternal ratingStandardized approach |
| spellingShingle | Miroslava Mastná Analysis of preparation process for Basel II implementation in Czech banks Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis Basel II Basel Committee on Banking Supervision capital adequacy credit risk internal rating Standardized approach |
| title | Analysis of preparation process for Basel II implementation in Czech banks |
| title_full | Analysis of preparation process for Basel II implementation in Czech banks |
| title_fullStr | Analysis of preparation process for Basel II implementation in Czech banks |
| title_full_unstemmed | Analysis of preparation process for Basel II implementation in Czech banks |
| title_short | Analysis of preparation process for Basel II implementation in Czech banks |
| title_sort | analysis of preparation process for basel ii implementation in czech banks |
| topic | Basel II Basel Committee on Banking Supervision capital adequacy credit risk internal rating Standardized approach |
| url | https://acta.mendelu.cz/53/3/0095/ |
| work_keys_str_mv | AT miroslavamastna analysisofpreparationprocessforbaseliiimplementationinczechbanks |