Basel II

An international body of banking supervisory authorities and central banks is developing new rules for capital requirements for credit institutions in Basel. Essentially, the supervisory bodies are concerned with making the capital requirements for credit institutions more dependent on their individual risk when lending. While credit exposures had to be backed by 8% equity until now, depending on the individual credit risk, different amounts of equity (more or less than in the past) will have to be underpinned.

For the clients of the credit institutions, this means that their individual credit risk is determined by a rating and this influences the financing costs. Leasing improves the balance sheet ratios of the lessee, which can have a positive effect on the rating. Leasing companies are not subject to the rules of Basel II for their business. The new capital requirements have been binding since 2006.

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