The Effect of the Implementation of the New Basel Capital Accord on Financial Ratios and Credit Quality of Domestic Financial Industry: A Case Study of Taiwan Business Bank

• Main Authors: Mei-Jane Liu, 劉美珍
• Other Authors: Jan-Chung Wang
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/89130921753801754013

碩士 === 國立高雄第一科技大學 === 金融研究所 === 99 === In response to the rapidly changing financial markets and in order to create a fair competitive environment, the Basel Committee published in 1988, the Basel Capital Accord, which regulates international-type bank’s capital adequacy ratios should be at least 8% of the standards to maintain adequate capital levels. To raise the risk sensitivity of the Agreement, and to enhance the practical applicability of operation, the Commission referred the proposed national banks and gradually amended the existing Basel Capital Accord to publish the Basel Capital Accord (II) in January 2001. The Basel Capital Accord (II) was implemented at the end of 2006. This thesis investigates if the implementation of the New Basel Capital Accord (II) improves bank risk management, affects financial ratios and credit quality of domestic banks, and effectively reduces the overall NPL Bank ratio. The conclusions of the thesis are as follows: 1. The t test and descriptive statistics show that the financial structure, asset quality, and business growth of Taiwan Business Bank are improved after the implementation of the Basel Capital Accord (II). 2. The Basel Capital Accord (II) enhances the concept of bank risk management, and allows banks to establish their own internal credit rating system (IRB). Thus the bank’s business activities and exposure can maintain an appropriate degree of sensitivity.