Competitive Effects of Basel II on U.S. Bank Credit Card Lending

Download or read book Competitive Effects of Basel II on U.S. Bank Credit Card Lending written by William W. Lang and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors analyze the potential competitive effects of the proposed Basel II capital regulations on U.S. bank credit card lending. They find that bank issuers operating under Basel II will face higher regulatory capital minimums than Basel I banks, with differences due to the way the two regulations treat reserves and gain-on-sale of securitized assets. During periods of normal economic conditions, this is not likely to have a competitive effect; however, during periods of substantial stress in credit card portfolios, Basel II banks could face a significant competitive disadvantage relative to Basel I banks and nonbank issuers.