Contents
Executive Summary on Impacts of Australian Banks- Introduction – Purpose, Background, Scope, Limitations
- Discussion – Risk related concepts, Credit risk, Market risk, Risk & current capital adequacy requirements, Credit risk weightings, Features of Basel 11 credit, Calculation of risk-weighted value, Definition of operational risk, Main features of basic indicator approach, Calculation of capital charge and its impacts, Impact on Australian banks.
- Conclusion on financial risk
- Appendices to financial risk
- Risk management Bibliography
Description
The purpose of this report is to investigate, analyze and discuss the likely impact on Australian banks if Pillar 1 of BASEL 11 is implemented. The impact of the capital adequacy requirements shall be explored using the Standard Approach to credit risk and the Basic Indicator Approach to operational risk. This report also highlights and takes into account, the changing regulatory environment in Australia.
