The requirements of Basel II and the credit risk in greek banks

Abstract

This project aims to understand the need for building up capital requirements for banks. In particular, the role of the institutional framework for the operation of banks is to ensure all the conditions required for the smooth functioning of the banking institutions in a fair competition and the protection of depositors of all malice and bad management of the administration of the institution. The rules for determining the capital requirements for banks aimed at strengthening the capacity of absorption losses in case an unpredictable risks to which banks are exposed for their operation. The rules for determining capital requirements developed by the Basel Committee on Banking Supervision. The structure of this paper is as follows: The introduction is a brief overview of the structural changes that have helped to create a new framework for financial rules and the operation of credit institutions and then report the historical background of Basel I, goal of the capital adequacy of international banks and the need to improve, with the creation of Basel II, the bulk of the work consists of three chapters.