 COMPARATIVE ANALYSIS OF THE BANK'S CAPITAL ADEQUACY ACCORDING TO THE BASEL AGREEMENTTesu Ramona Vasilica ()
Annals of Faculty of Economics, 2013, vol. 1, issue 1, 1125-1132 Abstract: The present article has as a research field the theoretical, methodological and practical aspects of the capital bank adequacy mechanism, according to Basel Agreement. In this paper we intend to present the advanced approaches of measurement and the minimum requirements regarding the bank capital. The objectives of the research theme, presented in this paper, are oriented mainly towards: presenting the principles and rules which governance the bank capital adequacy mechanism; calculation and comparison of the bank capital adequacy indicators. An objective that we consider needs to be mentioned is the reflection of the modifications which will affect the bank environment in the next years, as a result of adopting the new General Frame of Bank Supervision. Even though the actual stage of research is advanced, in the Romanian and foreign literature, which dedicates a lot of theoretical and empiric studies of the bank capital adequacy mechanism, in this moment, the international crises pointed out the purpose and the implications of the credit institutions within the financial system. In our paper we will use a theoretical and a practical research. The theoretical research describes the laws, rules of application in the banking field in our country. In the practical research we will use as a research method, the quality-comparative analyses, by presenting details regarding the bank capital adequacy indicators. Within the study methodology, we will use the available channels in order to structure in an useful way the research by: description, explanation, exemplification, simulation, comparative. Within the approached channels we mention: reading, analyzing information, research on specialty sites, discussions in the professional groups, discussions with the top managers of the bank, explanation, induction and deduction, conclusion and supporting our own opinion. Among the complicated, difficult, urgent problems of the European integration, within globalization and change, in the fore-ground we have the state of the economy, the economic problems, situation of the banking system. In Romania there is now a modern and competitive banking system, which provides circulation of the economy and domestic supplies banking products and services in accordance with trends in the European banking sector. In this way, the action line, I did a comparative study determining capital requirements under Basel 1, Basel 2, the standardized approaches, credit risk determined. Capitalization of Romanian bank's remain comfortable, providing good conditions for meeting additional capital requirements Basel III. In what concerns the capital adequacy management, the leading structures of a credit institution need to establish strategies and effective policies in order to maintain, on a continuous base, a level, a correct structure of their own funds, proper for covering the risks that the credit institution is exposed to. We conclude that a bank needs to increase its own funds, which is achieved by several methods decided by management. Presentation of concrete cases in approaching the bank's capital adequacy represent the personal work which completes the study concerning the purpose of back-up accounting in the banking system, adequate correlation of the risks and capitals. Keywords: Bank's Capital Adequacy; Weighted Assets; Own Funds; Solvency; Accord Basel; Comparative Analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ora:journl:v:1:y:2013:i:1:p:1125-1132 Access Statistics for this article More articles in Annals of Faculty of Economics from University of Oradea, Faculty of Economics Contact information at EDIRC. |
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