The Likely Impact of the Basel II Accord on Shipping Finance

The Likely Impact of the Basel II Accord on Shipping Finance Dissertation example
Masters
Dissertation
Finance & Accounting
Pages 32 (8032 words)
Download 0
The Likely Impact of the Basel II Accord on Shipping Finance Student Name Student ID E-mail address Supervisor Name Program Academic Year Semester March 31, 2012 Abstract The shipping industry is not well prepared to deal with requirements imposed by Basle II because of the sensitivity to economic instability, and the operations nature of the industry…

Introduction

The aim of the accord is to impose a formula that is used by banks to access risk before lending to any organisation. Shipping industry has a unique risk that affects the financial performance. The paper looked at risk assessment applied by financial institutions as imposed by Basel II accord and the behaviour of shipping industry (Bookstaber R., 2007, p.71). The analysis that was carried out included economic simulations, case studies before and after the implementation and the accord. It deals with concepts of Basel II enable one understand the lender-borrower dynamic within the context of ship finance and illustrates the notable economic and political factors that have contributed to the international banking sector’s gradual shift toward a more stringent borrower-evaluation regime of the sort Basle II will create (Chandrasekhar & Ghosh, 2007, p.56). ...
Download paper
Not exactly what you need?

Related papers

Basel III and the Continuing Evolution Of Bank Capital Regulation
The Basel Framework has ever since acted as a compulsory discipline for the banks and has contributed to the monetary power of the banking federation as a whole (Bank for International Settlements, 2011; Blundell-Wignall & Atkinson, 2010). The capital adequacy limits set by the Basel Committee on Banking Supervision on the banks are anticipated to decrease the insolvency perils of the banks. The…
Finance
Although, it is practically not possible to control some forces that operate outside a business, such as availability of the capital and the world economic conditions, management need to inspire and guide internal operations in helping ensure a secure competitive position within the marketplace. Moreover, both innovation and adaptability are essential in helping gain market share, and stay…
Finance
The debt financing includes bonds, leasing, borrowings from bank and mortgages and is universally seen as the easiest and cheapest way of financing activities. It also carries a tax-deductible benefit that is an attractive source in investing activities as interest payments will be expensed out (Narayanan, 2009). It also carried a risk of debt payments and leverage which could result in decrease…
Basel Accord
This can cause a domino effect involving millions of citizens. Because banking has become more and more an international endeavor, there is a greater need for banking regulations that encourage international cooperation. The organization responsible for monitoring international banking is the Basel Committee on Bank Supervision, or BCBS. One of their major focuses is in regulating a bank’s…
Finance
The capital structures of the companies were affected strongly since the availability of debt capital financing as well as equity capital financing declined considerably. Under influence of the financial crunch firms reduced security issuance and financial institutions reduced issuance of loans by a large extent (Fosberg, 2012). Among many consequences, the major consequence faced by the firms was…
Corporate Finance II Essay
The bank is listed in the Australian Stock Exchange and has made a satisfactory performance over time. Financial Policies of Westpac Banking Corporation related to Capital Structure In 2008, Westpac went into a strategic alliance with St. George Bank Limited in a merger operation. In that merger the exchange ratio of St. George Bank Limited to Westpac Bank was 1.31. This means that the valuation…
finance
Sainsburys is second in terms of market share, ASDA is third and Morrisons is fourth (with 11.8), according to Reuters Finance. But when we look into market share increase over the past two years we find that Tesco’s profit margin in 2011 was 8.47% and decreased to 8.15% in 2012 perhaps reflecting the overall decline in retail profits due to the weakened economy. It is important to note though…