Impact of the Prohibition of or Constraints on the Use of Internal Model Approaches on Non-Financial Companies Should Be Evaluated Carefully
The Basel Committee on Banking Regulation suggests to constrain the use of internal model approaches by banks for calculatng credit risks. For example, banks shall be forced to apply the standardised approach only for large non-financial companies. From Deutsches Aktieninstitut's point of view the proposal discriminates against highly solvent large companies. Accordingly, this position paper urges the Basel Committee to evaluate carefully the potential negative impact on the economy.
Contact Dr. Claudia Royé Deputy Head of Legal Department Head of Capital Markets Lawt Tel.+49 69 92915-40 roye(at)dai.de