Bjoern Schluter

Consequences of basel II for small and mid-sized enterprises Bjoern Schluter

Studienarbeit, die am 19.06.2002 erfolgreich an einer Universität in Niederlande eingereicht wurde. Abstract: At present, rating is the number-one-topic discussed, both within the banking community and also, even more frequently, at enterprises. The second consultative package of the Basel Committee for Banking Supervision provides a basic change in equity capital contribution of banks. It is expected to change the rules of the credit business with institutional customers considerably. As a result, especially small and mid-sized enterprises are forced to enhance their credit standing in order not to struggle with the serious consequences of Basel II. This case study shows how! Table of Contents: 1.|INTRODUCTION|4 1.1|Overview|4 1.2|Definition of the new Basel Capital Accord|4 1.3|Targets|5 1.4|Structure|5 2.|BASICS|6 2.1|Small and mid-sized Enterprises (SMEs)|6 2.1.1|Definition of SMEs|6 2.1.2|EconomicSituation andImportance ofSMEs|7 2.2|Rating|7 2.2.1|Credit ratings|7 2.2.2|External ratings by rating agencies|8 2.2.3|Bank-internal ratings|9 2.2.4|Function of credit ratings|10 2.2.5|Rating procedure and structure|12 2.2.6|Rating as an opportunity to prepare for Basel II|16 3.|BASEL II - THE NEW BASELCAPITAL ACCORD|18 3.1|The Basel Committee of Banking Supervision|18 3.2|The way from Basel I to Basel II|18 3.3|Overview of the new Capital Approach|19 3.3.1|The first Pillar: Minimum Capital Requirements|19 3.3.1.1|In context of granting credits to small and mid-sized companies|23 3.3.1.2|Possibilities of asset securitisation|26 3.3.2|The second Pillar: Supervisory Review Process|27 3.3.3|The third Pillar: Market Discipline|27 4.|THE CONSEQUENCES OF BASEL'S RESOLUTIONS|29 4.1|Current financial requirements of the small to medium-sized business sector|29 4.2|Internal vs. external rating of SMEs|31 4.3|Actual preparation status of SMEs|35 4.4|Rating under aspects of Investor Relations|42 4.5|Alternative financing possibilities ...