How has Basel II affected the capital charge of a loan to another bank and a loan to a large MNC?
What will be an ideal response?
Answer: Under Basel I, claims on other banks receive only a 20% weighting, meaning that only 20% of the claim is counted against the 8% capital requirement. Some claims receive a 50% weighting, but virtually all claims on the non-bank private sector receive a 100% weight and hence the full capital charge. Hence, the charge for the loan to the MNC would be larger. Under Basel II, other risks are taken into account (market risk and operational risk), and credit risk is measured differently, primarily to better reflect the true creditworthiness of the borrower. Consequently, it is conceivable that the capital charge for the bank loan is larger than for the MNC under Basel II.
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A(n) _____ is the software that enables the OS to control a device, either one installed inside the computer or an external device such as a flash memory drive.
Fill in the blank(s) with the appropriate word(s).
Which of the following is correct concerning the outline for persuasive messages?
a. Solicited and unsolicited sales messages follow the same outline steps. b. An attention-getting sentence is not essential in a solicited sales message. c. Unsolicited sales messages follow the same outline as a neutral news message. d. Solicited sales messages do not require a call for action.
William and Charlotte Collins divorced in November of Year 1. William moved out and Charlotte remained in their house with their 10-month-old daughter, Autumn. Diana, Charlotte's mother, lived in the home and acted as Autumn's nanny for all of Year 1. William provided 70 percent of Autumn's support, Diana provided 20 percent, and Charlotte provided 10 percent. When the time came to file their tax returns for Year 1, William, Charlotte, and Diana each wanted to claim Autumn as a dependent. Their respective AGIs for Year 1 were $50,000, $35,000, and $52,000. Who has priority to claim Autumn as a dependent?
A. Charlotte. B. William. C. Diana. D. They must negotiate amongst themselves.
Global distribution networks that involve middlemen, exporters, importers, and different transportation systems generally lower costs and prices for products.
Answer the following statement true (T) or false (F)