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 become aware in time when young of the advantages of age; to maintain the advantages of youth in old age: both are pure fortune.”
—Johann Wolfgang Von Goethe (1749–1832)
“When the manipulations of childhood are a little larceny, they may grow and change with the child into qualities useful and admire in the grown-up world. When they are the futile struggle for love and concern and protection, they may become the warped and ruthless machinations of adults who seek in the advantages of power what they could never win as children.”
—Leontine Young (20th century)