We created this site with the aim of providing an organic set of information, carefully screened and updated, regarding the new Basel agreement, “Basel 2”. In addition to the information, we intend to gradually add tools and services for the entrepreneur, with the aim of helping companies improve their rating, an assessment of the company on which the extent and cost of bank credit will depend in the coming years.
This site was the first, since the end of 2002, to provide an organic information on the subject and its excellent positioning on search engines, Google at the head, testifies to the need for a real reference point for Italian companies on the Basel 2 agreement and its consequences.
Correct information is essential given the lack of knowledge among companies (certainly not among banks) of what is happening in the banking world following Basel 2 and the effects that this will have on the companies themselves. Undoubtedly over the past two years there have been conferences and seminars dedicated to the topic, but the feeling is that in the world of Italian small and medium-sized enterprises (SMEs) there is no clear perception of the extent of the problem. And that this problem is confirmed by the heavy intervention of the Italian and German authorities (Chancellor Schroder has also taken the field), whose requests in favor of the smaller companies have been partially implemented by the Basel Committee.
But … where is the problem, what is the content of the Basel 2 agreement?
In a nutshell, Basel 2 is the new international agreement on banks’ capital requirements. According to this, the banks of the member countries will have to set aside portions of capital proportional to the risk deriving from the various credit relationships assumed. Higher risk = higher provisions, therefore higher costs for the bank. Banks will have to classify their customers based on their riskiness, through increasingly sophisticated rating procedures. The fear is that the application of the agreement could translate into less credit for riskier companies and higher rates. It therefore seems clear that companies, and in particular SMEs, must put in place all the political, managerial and budgetary policies, capable of strengthening their structure and image in order to face the examination of bank ratings serenely.
This site was created to try to fill the scarce diffusion of information on the problems connected to the implementation of the new Basel agreement, to favor the diffusion of all that information, reflections, contributions and operative indications that can be of real help to the world of Italian SMEs. .
Warning: 2007 is the year of the definitive implementation of the Basel 2 agreement, but its effects on the bank-business system have already begun! The banks, in fact, must demonstrate 3 years of operational compliance in order to access the most advanced (and least onerous) approaches envisaged by the agreement, therefore Basel 2 has entered into force for at least two years !!!