This shall be the source of all the necessary data on loan applicants and loan users. According to the NBC, the aim is to enable the bank to estimate the required amount of provisions to cover possible losses on each of the placements. Eliminateing the illogical range Changes in the method of calculating capital adequacy, including not only liability capital but also weighted bank asset calculation, have also been announced. The sectoral structure of receivables or the method of receivables coverage shall be used as the criterion in establishing risk weight values. The new ruling will.
International experts rate the announced changes of the local banking rules very highly.
According to the head of the World Bank mission Mr Olivier Godron, the new rules concerning the evaluation of the actual situation in the field of banking are a necessary prerequisite for an increased entry of foreign capital and for taking the decision on which banks must start the rehabilitation process while others may apply only some transitional measures in order to adjust the scope of their operations to their real financial strength. It is estimated that the new method of establishing adequacy coefficients will influence the scope of the banks' operations. Partly because the consistent application of the proposed changes will definitely lead to the reduction of the capital adequacy coefficients, which in turn is the basis for establishing the scope of banking operations.