THE IMPLICATIONS OF THE NEW CAPITAL ADEQUACY RULES FOR PORTFOLIO MANAGEMENT OF CREDIT ASSETS

Argues that there are four key drivers which require banks to move from a transactional to a more portfolio management like approach when managing credit assets. These are: structural changes in the credit markets, inefficiencies of risk transfer in lending markets, ballooning debt levels in the US, and the proposed changes for capital adequacy.

Subjects

• Portfolio management
• Banks and banking
• Risk management.
• Credit.
• Bank investments
• Bank capital.

Details

• From
  Journal of Banking & Finance, Jan. 2001, pp.97-114