The New Basel Capital Accord

It is a consulting document intended to change the rules of International banking activity’s management, centered on risk control. The new Agreement is subdivided into three parts: the first part describes the Capital’s minimum requisites; the second part defines the watch committee’s list and the third deals with Market’s trends.

The article singles out the main consequences this change could create in Romania too, as economic observers stress, that is:

• discrimination between big and small banks, since owing to high financing costs stood up in order to carry out structures for the application of the most developed rating methodologies , small banks will apply standard methodologies, leading to a higher rating of their solvency index;
  
• a greater trend to merging and acquisitions among credit institutions of banking Rumanian system: in consequence of this small banks will leave Market;
  
• SME will be harmed by internal rating systems, because they are more risky, in terms of investment;
  
• received interests of credits and credit services will be modified according to quality of requests, so that interest rates will be higher for clients having a worse rating and vice versa