Parliament adopted Report on Capital Adequacy

02 September 2003

Parliament has adopted an own-initiative report on the Basle II regulation and bank lending.

In his Explanatory Statement, Mr Radwan says with respect to SME’s that care must be taken to ensure that the costs arising from the new regulatory provisions remain manageable for small institutions.

Action should be taken to prevent the new capital adequacy requirements from leading to any further consolidation of the banking sector. The key aspects here are the possible differences as regards the minimum capital requirements required by the standardised approach as opposed to internal rating-based (IRB) approaches when it comes to determining credit risk.

Final Report

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