Basel II

In June 2004, Basel Committee drafted the definitive principles, known as Basel II Accord issued since 1 January 2007, involving UE Countries Central Banks as well as Bank of Italy in order to promote supervisory regulations and, in particular, mitigation procedures for credit risk provided by National and Community Credit Institutions. The Basel II Accord relies on the following pillars:

1)Minimum Capital Requirements
Each Credit Institution must hold a minimum amount of capital in order to ensure its capital adequacy strictly linked to the assessment of the credit risk by means of an INTERNAL RATING establishing the bank adequacy and its credit level.

2)Central Banking Supervision
The Central Banking Supervision relies on a regulatory discretion to control the banking capital adequacy assessment by requiring banks to hold capital in excess of the minimum standards.

3)Market Discipline and Transparency
Supervisory process disciplines, for each bank institution, the public reporting of the transparency rules in assessing capital requirements and risk management.

The effects of the rating evaluation produce 2 types of results:

a)A higher difficulty to obtain access to credit since banks will carefully select their Clients in order to avoid provision increase;

b)An “amount” (Pricing) increase, progressively related to Rating, which will be paid to the banks.

2 INTERVENTION LEVELS ARRANGED BY OUR COMPANY 

FIRST LEVEL

UP-TO-DATED BUSINESS ANALYSIS SCHEME  OF OFFICIAL BALANCE SHEET AND BASEL II RATING

The scheme is framed as follows:

  • 1)Balance Sheet Restatement based on management parameters;
  • 2)Financial Ratio and Balance Sheet arrangement;
  • 3)Basil II Rating for “Credit Risk” Analysis.

WE OFFER, AS A PERIODIC ANDUNA TANTUM CONDITION, THE FOLLOWING TYPES OF SERVICE

TYPE OF SERVICE

DESCRIPTION

BASIC FINANCIAL CHECK-UP

(LIGHT RATING )

(LIGHT SCORING)
for enterprises with a turnover lower than € 1.000.000

The Scoring is a simplified procedure employed by small enterprises with a turnover lower than € 1.000.000,00

This type of service allows a preliminary analysis of the “credit rating class” current trend (Basel II Rating) by means of official reporting on banking dealings, business practices, teamwork organization etc., in order to establish enterprise placement and to assess its own access to credit level in accordance with Basel II regulatory standards.   

The resulting Rating score doesn’t replace the existing one detected by the Credit Institutions and it doesn’t assure any credit granting or achievement, nevertheless the aim is to obtain a detailed and up-to-dated business analysis by establishing a positioning and TAKING INTO ACCOUNT the enterprise riskiness due to total or partial granting withdrawal or financial amount increase.  

SECOND LEVEl


BEST SOLUTIONS FOR IMPROVEMENT OF ENTERPRISE EVALUATION PARAMETERS TO AVOID RELATIVE RISKINESS

TYPE OF SERVICE

DESCRIPTION

ADVANCED FINANCIAL CHECK-UP

(PERMANENT ADVISORY ON RATING IMPROVEMENT)


(FULL RATING)

(FULL SCORING)
for enterprises with a turnover lower than € 1.000.000

Our service, based on the issues provided by the first evaluation level, consists of an exhaustive strategic analysis, underlying the business weakness, in order to set improvement areas and to suggest the best practices to follow. Furthermore, it could be possible to attend the enterprise during the monitoring of infra-annual estimated parameter aimed at a gradual improvement of the business rating allowing enterprise to achieve an appropriate access to credit at best economic conditions to fulfil the expected business development.     

HOW

EXPENSES

Direct door-to-door Assistance to Clients  

They differ in consequence of the applicant turnover and the “Full” level costs that might be merged by the “Light” level ones, if yet incurred, unless applicant chosen a former enterprise static analysis.