Importance of Basel III for lending alternatives to SMEs

Business & Finance, Finance & Investing, Finance
Cover of the book Importance of Basel III for lending alternatives to SMEs by Daniel Hosp, GRIN Verlag
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Daniel Hosp ISBN: 9783656367420
Publisher: GRIN Verlag Publication: February 5, 2013
Imprint: GRIN Verlag Language: English
Author: Daniel Hosp
ISBN: 9783656367420
Publisher: GRIN Verlag
Publication: February 5, 2013
Imprint: GRIN Verlag
Language: English

Seminar paper from the year 2012 in the subject Business economics - Investment and Finance, grade: 1, University of Innsbruck, course: Aktuelle Themen in Banking and Finance, language: English, abstract: Basel III is currently on everyone's lips. Some weeks before the introduction of the first requirements it is still not fully clear how and which parts of it will be implemented. Several studies about the impact of Basel III on bank loan availability for small and medium sized companies (SMEs ) do exist (e.g. McKinsey (2010)) which have shown that the introduction of those new regulatory requirements hamper the access for SMEs to sufficient sources of funding. This raises the question if these restrictions for bank lending can be substituted by some alternative funding source or if the availability of external finance to SMEs will be constrained under Basel III. This seminar paper focuses on the lending alternatives apart from bank loans and the possibility of gathering additional equity capital. This is basically the so called asset based finance. Thereby the paper concentrates on European SMEs as long as their conditions are quite similar to those of Austrian SMEs and the introduction of Basel III can be expected to be most strict for European financial institution and thus may hit those SMEs the most. Before starting with the explanation of different lending alternatives the importance of SMEs for the global economy should be pointed out. The importance is especially present in Europe. SMEs account for two third of the total employment in the EU-27 area and they generated more economic growth from 2002 to 2008 than large firms did (Oxford Economics, 2011). Moreover they represent 99% of all businesses that exist in Europe (European Commission, 2005). So SMEs are the main driver of economic growth, employment and wealth in Europe. Apart from that each single SME does not have a systematic risk and they were also not responsible for the current financial crisis. Thus SMEs should generally be supported to sustain growth and employment. Nevertheless the rules of Basel III may have highly negative influences on their financing possibilities which moreover has a negative effect on the real economy...

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Seminar paper from the year 2012 in the subject Business economics - Investment and Finance, grade: 1, University of Innsbruck, course: Aktuelle Themen in Banking and Finance, language: English, abstract: Basel III is currently on everyone's lips. Some weeks before the introduction of the first requirements it is still not fully clear how and which parts of it will be implemented. Several studies about the impact of Basel III on bank loan availability for small and medium sized companies (SMEs ) do exist (e.g. McKinsey (2010)) which have shown that the introduction of those new regulatory requirements hamper the access for SMEs to sufficient sources of funding. This raises the question if these restrictions for bank lending can be substituted by some alternative funding source or if the availability of external finance to SMEs will be constrained under Basel III. This seminar paper focuses on the lending alternatives apart from bank loans and the possibility of gathering additional equity capital. This is basically the so called asset based finance. Thereby the paper concentrates on European SMEs as long as their conditions are quite similar to those of Austrian SMEs and the introduction of Basel III can be expected to be most strict for European financial institution and thus may hit those SMEs the most. Before starting with the explanation of different lending alternatives the importance of SMEs for the global economy should be pointed out. The importance is especially present in Europe. SMEs account for two third of the total employment in the EU-27 area and they generated more economic growth from 2002 to 2008 than large firms did (Oxford Economics, 2011). Moreover they represent 99% of all businesses that exist in Europe (European Commission, 2005). So SMEs are the main driver of economic growth, employment and wealth in Europe. Apart from that each single SME does not have a systematic risk and they were also not responsible for the current financial crisis. Thus SMEs should generally be supported to sustain growth and employment. Nevertheless the rules of Basel III may have highly negative influences on their financing possibilities which moreover has a negative effect on the real economy...

More books from GRIN Verlag

Cover of the book Armut in Deutschland by Daniel Hosp
Cover of the book Psychologische Aspekte der Behavioral Finance - Eine Darstellung der wichtigsten Modelle by Daniel Hosp
Cover of the book Erstellung, Dokumentation und Auswertung eines individuellen Trainingsplans im Schwimmen über einen Makrozyklus von 14 Wochen mit anschließender Leistungsüberprüfung by Daniel Hosp
Cover of the book Globalization, Democracy, and outcomes of Internationalization by Daniel Hosp
Cover of the book Märchen erzählen mit dem Kamishibai by Daniel Hosp
Cover of the book Unterrichtsstunde: Wir üben das Lesen und Einstellen der Uhr und die Abfolge tageszeitlicher Tätigkeiten im Stationenlernen (5. Klasse) by Daniel Hosp
Cover of the book Das Franchise-Konzept by Daniel Hosp
Cover of the book Konsistenz- und dissonanztheoretische Ansätze der Einstellung und ihre Bedeutung für die Modifikation von Einstellungen im betrieblichen Kontext by Daniel Hosp
Cover of the book Was ist Interaktion und wie 'frei' interagieren wir? Über die Begriffe 'Charaktermaske' und 'Sozialcharakter' by Daniel Hosp
Cover of the book Über Leben und Werk von Rudolf Bahro by Daniel Hosp
Cover of the book Juden in Deutschland nach 1945 by Daniel Hosp
Cover of the book Der Hochleistungssport in der DDR by Daniel Hosp
Cover of the book Die Funktion der Sprache im politischen Diskurs des 'Movimiento 15-M' by Daniel Hosp
Cover of the book Morphologisierung der (deutschen) alphabetischen Schrift by Daniel Hosp
Cover of the book Die Bedeutung des Ehrenamtes in Non-Profit-Organisationen. Aspekte für das Personalmanagement by Daniel Hosp
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy