Non-Knowledge Risk and Bank-Company Management

1. Front Matter

   Pages i-xii

   PDF

2. The Context: The Financial System

   • Vincenzo Formisano

   Pages 1-26

3. The Evolution of Prudential Regulation

   • Vincenzo Formisano

   Pages 27-49

4. The Banking Business: The Governing Body and the Operational Structure

   • Vincenzo Formisano

   Pages 50-83

5. The Bank-Company Relationship

   • Vincenzo Formisano

   Pages 84-128

6. Intangibles in the Assessment of Creditworthiness

   • Vincenzo Formisano

   Pages 129-166

7. An Empirical Case

   • Vincenzo Formisano

   Pages 167-192

8. Back Matter

   Pages 193-241

   PDF

In the current economic scenario, the intangible assets contribute significantly to the construction of the competitive positioning of a company. It follows that this intangible information must be appropriately considered in the internal rating system (IRSs). Currently key aspects of business risk and operational risk such as potential for growth, competitive capabilities, core competencies, role in the supply chain of membership, and governance are being considered as secondary in this system. Intangible factors such as the milieu of the company and the environment in which it operates, are not being appropriately considered. In this book, Vincenzo Formisano proposes new guidelines aimed to set desirable IRSs in which the weight of intangible assets is appropriately and properly valued. He addresses practical rules for achieving a rating system capable of understanding and enhancing the intangible assets of a company and for the assessment of creditworthiness. The first part of the book focuses on existing practices; the second part exposes a general model for the classification and interpretation of intangibles. The third part provides practical guidelines designed to configure desirable rating models in which the weight of intangible assets is correctly considered. This book offers theoretical and practical insights and an easy-to-read approach which provides a valuable source of information for teachers and students in Finance. It is also a useful reference point for the Banking, Accounting and Finance managerial communities.

• financial system
• Government
• management
• Italy
• efficiency
• stability
• Globalization
• cooperative banks
• corporate governance
• prudential regulation
• Basel Accords
• Internal Ratings
• Basel 3
• credit
• bank-company relationship
• SME
• risk-yield
• Frosinone
• intangible assets
• bank

• University of Cassino, Italy

  Vincenzo Formisano

Vincenzo Formisano is an Associate Professor in Economics and Business Management at the University of Cassino in Italy where he teaches Marketing and Strategic Business Management. His research activity spans the subjects of local banks, business finance, and SME innovations; and focusses in particular on ratings between companies, banks and territories, banking growth factors, intangible assets and industrial districts.

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