The Advantages
- Basel-II benefits customers with lower probability of default.
- Basel-II benefits banks to hold lower capital requirement as having corporate customers with lower probability of default (Graph 1).
- Basel-II benefits SME customers to be treated differently from corporates.
- Basel-II benefits banks to hold lower capital requirement as having credit card product customers with lower probability of default (Graph 2).
Read more about this topic: Advanced IRB
Famous quotes containing the word advantages:
“A woman might claim to retain some of the child’s faculties, although very limited and defused, simply because she has not been encouraged to learn methods of thought and develop a disciplined mind. As long as education remains largely induction ignorance will retain these advantages over learning and it is time that women impudently put them to work.”
—Germaine Greer (b. 1939)
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—Ralph Waldo Emerson (1803–1882)