Goncharova M.V. Basel II International Convention: Bank’s Trading Portfolio – Constitution and Regulation
DOI: https://doi.org/10.15688/jvolsu5.2016.3.19
Marina Vyacheslavovna Goncharova
Doctor of Economic Sciences, Professor, Department of Economics and Management,
Russian State Economic University named after G.V. Plekhanov (Volgograd Branch)
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Volga-Donskaya St., 11, 400066 Volgograd, Russian Federation
Abstract. The author investigates the modernization approaches and the practical standards of international bank regulation. The first agreement, which normative installations subsequently began to adhere to the commercial banks of the majority of modern states, became “International convergence of the measurement of capital and standards of capital” 1988 – Basel of Capital Accord, Basel I. In the article the author examines the basic conditions of Basel II relating to the formation and management of a portfolio of financial instruments and commercial banking products.
In response to the bank crises in 1990 and the continuous criticism of Basel I in 1999, Basel committee made the decision to develop the new, across-the-board agreement about the sufficiency of capital. In 2004 it was published: “The international convergence of the measurement of capital and standards of capital: new approaches”. The document obtained completely acceptable structure. In the I part the region of its application is presented, in the II part minimum requirements for the level of capital are revealed, in the III part – the realtime control is represented, in the IV part – market discipline is revealed.
The bank’s trading portfolio is a mobile and actively managed pool of financial instruments and products, which the bank holds on its balance sheet with a view to a profitable resale and (or) to cover possible losses from other components of the portfolio.
Key words: bank, capital, sufficiency, trading portfolio, financial instruments, portfolio management, regulation, supervision.
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