Management of credit risk in view of Basel II

  Conferenţiar univ. dr. IULIA IUGA – Universitatea „1 Decembrie 1918” Alba Iulia
                            e-mail: iuga_iulia@yahoo.com

Abstract:
The Basel Committee proposes to permit banks a choice between two broad
methodologies for calculating their capital requirements for credit risk. One alternative
will be to measure credit risk in a standardised manner, supported by external credit
assessments. The alternative methodology, which is subject to the explicit approval of the
bank’s supervisor, would allow banks to use their internal rating systems for credit risk.

Key words: credit risk, rating systems

JEL Code: G32