This website uses cookies to ensure you have the best experience. Learn more

Basel Ii Implemenatation Essay

4612 words - 19 pages

Research Title

Basel II Capital Accord and implementation implications in Albania

Prepared: Elda Lila

Mentor : Professor William Handorf, Ph.D.,

July 2007

Abstract: Basel II Capital Accord and implementation implications in Albania 2

Abstract: Basel II Capital Accord and implementation implications in Albania 2

I. What is New Basel Capital Accord and its Evolution 4

II. Adoption of Basel II 5

BCBS Countries 5

In Other Countries 6

Banking Supervision Improvement Priorities 6

III. History of Banking Supervision in Albania (Banking System in Albania and Supervisory Process. 7

IV. Three Pillars of Basel II and the implications related to the ...view middle of the document...

II. The second part is related to the adoption of the Basel II Accord in BSBC countries and other countries and banking supervision improvements priorities in these countries. The implementation plans vary from country to country, but the trend is to put the simpler, less risk sensitive approaches in place before the more complex, more risk sensitive approaches.
III. The third part is about the history of banking system in Albania and supervisory process. The banking system in Albania is still a new and developing one, although there are big developments in the last years. Albania was the last of the central and eastern European countries to embark upon democratic and free market reforms.
Banking sector, even though operating in not-well informed (educated) banking environment, has represented a tendency to grow since 1992. The developments in Albanian financial system and banking require a more risk-oriented supervision process.
IV. The fourth and the last part explain three Pillars of Basel II and the implications related to the implementation in Albania. Basel II is structured around three so-called pillars:
Pillar 1 – Capital Defined
Pillar 2 – The Supervisory Review Process
Pillar 3 – Market Disclosure
Each national supervisor needs to carefully consider Basel II's benefits, taking into account the characteristics of its own domestic banking system. IS Albania ready to implement Basel II? The answer is: not yet in the short run. For Albania more time will be needed for laying the groundwork for the adoption of Basel II. As a result, a longer timeframe may be required for implementation but it is a direction that Albanian banking system and supervisory process should move to.
Basel Capital Accord and implementation implications in Albania

I. What is New Basel Capital Accord and its Evolution

When a bank fails, the consequences can spread far beyond the bank, affecting customers and institutions that have deposited funds or invested capital there, and having negative effects in the domestic and, in some cases, international markets. Although it is recognized that the regulation of banks, per se, cannot prevent failures, the application of sound risk management standards together with the maintenance of appropriate levels of capital can lower the probability of such occurrences.

Supervisors have long sought to ensure that banks maintain adequate capital to cover all risks. In 1988, the Basel Committee on Banking Supervision agreed the 'International Convergence of Capital Measurement and Capital Standards', more commonly known as the Basel Capital Accord. Fully implemented in 1992, the Capital Accord introduced a basic risk sensitive capital adequacy regime which provided essentially only one option for measuring the appropriate capital of internationally active banks.

More than a decade later, the evolution of banking worldwide and the realization that the best way to measure, manage and...

Other Papers Like Basel Ii Implemenatation

A Heart Of Darkness Essay

1748 words - 7 pages headed by Leopold II, King of the Belgians. (http://history.state.gov/countries/congo-free-state) He is a highly-educated, refined gentleman; however, in the end, the brutal nature of the Congo forces him to resort to the life of a murderer and pilferer. The name Kurtz itself has symbolic meaning. “The physical shortness in Kurtz implies a shortness of character and spirit” (Heart of Darkness: A systematic evaluation). Conrad greatly

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason, the

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages ‘It’s not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages’ (Henry Ford, cited in Johnson and Weinstein 2004, p. 2). When the Ford Motor Company announced that it would more than double the wages of its workers in January 1914 to a ‘five-dollar day’ minimum, was this a contradiction to Henry Ford’s statement? If customers are actually the ultimate payers of wages, then more than

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages A Historical Analysis of the Economical Breakthroughs of the Industrial Revolution During the Industrial Revolution, many elements of society experienced huge breakthroughs that would change the way they functioned forever. Economics were definitely one of them. With many new inventions and many factories appearing, many, many, more resources were being created than ever before. Also, all of the revenue from these resources was being given to

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages Leadership is defined as a socially constructed process and which also affect organizational future outcomes. Leader is someone at high position who have overall duty for an organization, she or he decide what to do and the way how to achieve it. (Carter and Greer, 2013)The role of leader is extremely important for an organization, leader use their own power to influence the followers though many different ways such as motivation in order to

Cuba Civil Rights

1906 words - 8 pages Picture a country that has limits on how much you can make random government imprisonments and more what do you do. That is the situation for the eleven million seventy-five thousand two hundred forty-four people of Cuba since the takeover of Fidel Castro. The US is opposed to Castro taking control of Cuba. Castro managed to ease the United States nerves when he said that Cuba was against all forms of communism. According to Lana Wylie the Union

US Freight System

1273 words - 6 pages General Environment Each American requires the movement of approximately 40 tons of freight per year across the freight network. This includes everything from shirts to lawn mower to orange juice. • As the U.S. population expands, the U.S. freight system will be called upon to meet the demands of a larger population • Between 2010 and 2035, the system will experience a 22 percent increase in the total amount of tonnage it moves • By 2050, with

Democratic Peace Theory

1852 words - 8 pages Intro: US Presidents have made it a goal during their term(s) in office to establish a good relationship with foreign countries and even try to improve upon existing connections with our allies. Some believe it is to prevent conflicts between the countries while others dispute that it is a threat assessment by the United States to pick and choose their friends and enemies. Preventing conflict between two democracies or countries that practice

Booker T. Washington

1621 words - 7 pages “Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome” –Booker T. Washing. Booker Taliaferro Washington was born in Hale’s Ford, Virginia on April 5th, 1856 to Jane Burroughs and an unknown White man. Washington was married three times. His first wife was Fannie N. Smith from Malden, West Virginia. Booker and Fannie were married in the summer of 1882 and had one child

Corn, Broccoli, Grass Or Balanced

2611 words - 11 pages to make the body management of glucose (turned sugar) malfunction. Thus, the results are alleviating obesity, Type II diabetes, heart disease, and other diet-related illness (Pollan 107). Meat is not left out of the industrial food system’s rampage. Feedlots and CAFOs have become primal because of corn. Animals that are not naturally evolved to eat corn are fed corn regardless (Pollan 68). This is menacing to the human health because animals

Related Essays

Freedom And Responsibility Essay

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws Essay

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are

Holidays In Albania Essay

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are