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:
“No advantages in this world are pure and unmixed.”
—David Hume (1711–1776)
“There are great advantages to seeing yourself as an accident created by amateur parents as they practiced. You then have been left in an imperfect state and the rest is up to you. Only the most pitifully inept child requires perfection from parents.”
—Frank Pittman (20th century)