Author： Berger Allen
Publisher： Springer Publishing Company
ISSN： 0920-8550
Source： Journal of Financial Services Research, Vol.29, Iss.1, 2006-02, pp. : 5-36
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
Abstract
We examine the likely competitive effects of implementation of Basel II capital requirements on banks in the market for credit to SMEs in the U.S. Similar competitive effects from Basel II may occur for other credits and financial instruments in the U.S. and other nations. We address whether reduced risk weights for SME credits extended by large banking organizations that adopt the Advanced Internal Ratings-Based (A-IRB) approach of Basel II might significantly adversely affect the competitive positions of other organizations. The analyses suggest only relatively minor competitive effects on most community banks because the large A-IRB adopters tend to make very different types of SME loans to different types of borrowers than community banks. However, there may be significant adverse effects on the competitive positions of large non-A-IRB banking organizations because the data do not suggest any strong segmentation in SME credit markets among large organizations.
Related content
The Basel II Reform and Retail Credit Markets
By Claessens Stijn Krahnen Jan Lang William
Journal of Financial Services Research, Vol. 28, Iss. 1-3, 2005-10 ,pp. :
Access to resources
Recommend
By Berger Allen
Journal of Financial Services Research, Vol. 39, Iss. 1-2, 2011-04 ,pp. :
By Saurina Jesús Trucharte Carlos
Journal of Financial Services Research, Vol. 26, Iss. 2, 2004-10 ,pp. :