What do Basel Capital Accords mean for SMEs?
AbstractThis paper analyses the impact of the new Basel Capital Accords (Basel II and Basel III) on the bank’s capital requirements in a portfolio of Small and Medium-sized Enterprises (SMEs) when the internal ratings-based (IRB) approach is used. To do this, the study uses a large database of Spanish firms and covers the period from 2005 to 2009. We also examine the effect on the credit risk premium charged by banks of the guarantee offered by a Loan Guarantee Association (LGA) to a SME; and whether this foreseeable decrease in the interest rates applicable to the SME is compensated by the cost of this guarantee
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Bibliographic InfoPaper provided by Universidad Carlos III, Departamento de Economía de la Empresa in its series Business Economics Working Papers with number wb111004.
Date of creation: Apr 2011
Date of revision:
Bank capital requirements; Credit risk mitigation; Bank financing of SMEs; Basel II; Basel III Loan Guarantee Association;
Find related papers by JEL classification:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-07 (All new papers)
- NEP-BAN-2011-05-07 (Banking)
- NEP-BEC-2011-05-07 (Business Economics)
- NEP-CFN-2011-05-07 (Corporate Finance)
- NEP-ENT-2011-05-07 (Entrepreneurship)
- NEP-FMK-2011-05-07 (Financial Markets)
- NEP-REG-2011-05-07 (Regulation)
- NEP-RMG-2011-05-07 (Risk Management)
- NEP-SBM-2011-05-07 (Small Business Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Clara Cardone Riportella & Antonio Trujillo Ponce, 2006. "EFECTOS DEL AVAL DE LAS SGRs EN LA FINANCIACIÓN DE LAS PYME Y LOS REQUERIMIENTOS DE CAPITAL DE BASILEA II," Documentos de Trabajo de EconomÃa de la Empresa db060302, Universidad Carlos III, Departamento de Economía de la Empresa.
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