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1- The basel committee
2- Basel I
3- Basel II

3- BASEL II

• Introduction
• The pillars of Basel II
• Basel II, what consequences for firms?
• The impact of Basel II on western markets of securitization

- The impact of basel II on western markets of securitization

• Alignment of countable treatments if the investor is the assignor himself or another bank:

o The 2 main motivations of banks to act as assignors in securitization operations do not converge anymore. Banks consider titrisation operations to make liquidity available at competitive costs and to liberate a regulatory capital, which will not be the case with Basel II.

o Conclusion : Basel II will tend to promote the role of banks as investors at the expense of their role of assignors.

• The impact has yet to be determined but what is certain is that in the United States and in France a clear slowdown of the activity is perceptible.

- The impact of Basel II on the securitization of emerging markets

• At first sight, Basel II might have a negative impact on emerging markets for all the stocks issued by these markets will only be able to receive a mark equivalent to the country risk.

• Lebanese banks that would buy Lebanese « senior » paper will be considered as investing in « speculative grade » paper, which would make them less competitive for their international counterparts. On the other hand, American banks seem to receive an advantage that will allow them to remain more competitive.

   
         
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