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:
“To say that a man is your Friend, means commonly no more than this, that he is not your enemy. Most contemplate only what would be the accidental and trifling advantages of Friendship, as that the Friend can assist in time of need by his substance, or his influence, or his counsel.... Even the utmost goodwill and harmony and practical kindness are not sufficient for Friendship, for Friends do not live in harmony merely, as some say, but in melody.”
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