Leasing companies in Czech Republic from the perspective of Basel III regulation

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F26968631%3A_____%2F19%3AN0000004" target="_blank" >RIV/26968631:_____/19:N0000004 - isvavai.cz</a>

Výsledek na webu

<a href="https://is.muni.cz/do/econ/sborniky/2019/Proceedings_final.pdf" target="_blank" >https://is.muni.cz/do/econ/sborniky/2019/Proceedings_final.pdf</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Leasing companies in Czech Republic from the perspective of Basel III regulation

Popis výsledku v původním jazyce

The aim of the paper is to evaluate the situation of leasing financing providers (leasing companies) against the rules of capital adequacy, especially the newly prepared rules of 2017 Basel III regulatory framework (sometimes called Basel IV), that should enter into force between 2022 and 2027. In the first part, the article summarizes the opinion of leasing companies associated in the European Federation of Leasing Company Associations Leaseurope on the new capital adequacy rules of Basel III. This opinion is based on the theoretical basis of risk management (especially credit risk) in leasing, as well as on several empirical studies conducted with real data sets. These studies and their results are discussed in more detail in the article. The results clearly show that the risk associated with the provision of foreign capital through leasing is significantly lower than the risk calculated by the capital adequacy calculation for Basel III rules. This is confirmed by several other sources mentioned in the text. The second part of the article focuses on the situation in the Czech Republic. It is based on publicly available data on the largest leasing companies operating on the Czech market and shows the state of their capital adequacy on simplified indicators of the ratio of Equity / Balance sheet total and Equity / Receivables. As a complementary indicator, the ratio of Share capital / Balance sheet total is also used. Furthermore, a simplified stress test based on 5% resp. 10% decline in net receivables and coverage of this decline from equity was performed. The results show that although Leaseurope's objections to Basel III rules applicable to leasing companies are justified, leasing companies operating in the Czech Republic would - with some minor exceptions - probably have no serious problems with their fulfillment.

Název v anglickém jazyce

Leasing companies in Czech Republic from the perspective of Basel III regulation

Popis výsledku anglicky

The aim of the paper is to evaluate the situation of leasing financing providers (leasing companies) against the rules of capital adequacy, especially the newly prepared rules of 2017 Basel III regulatory framework (sometimes called Basel IV), that should enter into force between 2022 and 2027. In the first part, the article summarizes the opinion of leasing companies associated in the European Federation of Leasing Company Associations Leaseurope on the new capital adequacy rules of Basel III. This opinion is based on the theoretical basis of risk management (especially credit risk) in leasing, as well as on several empirical studies conducted with real data sets. These studies and their results are discussed in more detail in the article. The results clearly show that the risk associated with the provision of foreign capital through leasing is significantly lower than the risk calculated by the capital adequacy calculation for Basel III rules. This is confirmed by several other sources mentioned in the text. The second part of the article focuses on the situation in the Czech Republic. It is based on publicly available data on the largest leasing companies operating on the Czech market and shows the state of their capital adequacy on simplified indicators of the ratio of Equity / Balance sheet total and Equity / Receivables. As a complementary indicator, the ratio of Share capital / Balance sheet total is also used. Furthermore, a simplified stress test based on 5% resp. 10% decline in net receivables and coverage of this decline from equity was performed. The results show that although Leaseurope's objections to Basel III rules applicable to leasing companies are justified, leasing companies operating in the Czech Republic would - with some minor exceptions - probably have no serious problems with their fulfillment.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50206 - Finance

Projekt

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Návaznosti

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Rok uplatnění

2019

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

European Financial Systems 2019

ISBN

978-80-210-9337-9

ISSN

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e-ISSN

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Počet stran výsledku

11

Strana od-do

584-594

Název nakladatele

Masarykova univerzita

Místo vydání

Brno

Místo konání akce

Brno

Datum konání akce

1. 1. 2019

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

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