Essays on BCBS

Managed care models are strategies put in place to safeguard the functions and activities of the managed care facilities within a country. The managed care models usually have a continuum to guide their activities and operations. The continuum, therefore, is critical to understanding the differences between managed care plans. In particular, the continuum is responsible for the scope of control a managed plan has over the activities of health facility (Martino, Elliott, Haviland, Saliba, Burkhart, & Kanouse, 2016). As a result, it helps in clarifying the main reason behind the differences in the control of the managed care models. In ...

Credit Risk Management

Commercial Loan Market Commercial loans are debt arrangements agreed upon by the lender (business) and borrower (financial institution) to cover operational costs or fund business projects. During economic downturn, financial institutions are cautious of their lending and consequently import strict regulations that force borrowers to pay a higher interest rate. The agreement between the lender and borrower in the market is documented in a “credit agreement.” In credit risk management, the most important components of the agreement describe the covenants, the security requirements, priority of payments and events of default.

Segmentation of Commercial Loan Market

Financial institutions use credit rating to qualify borrowers based ...

Credit Risk Management Analysis

Credit risk emanates from the peril of loss of principal or shortfall of a financial reward stemming from a borrower default to repay a loan obligation. The failures to honor a contractual agreement of a loan results of a wholesale credit risk. When a borrower envisages to use future cash flow to pay a current debt credit risk will eventually arise. Then the savers will assume credit risk by way of interest payment from the borrower or issuer of the debt obligation. The wholesale credit risk, therefore, emanates from the defaulters of debt obligation that have been acquired from ...

The Basel rules are recommendations developed by the BCBS (born in 1975 an organization formed by the major central banks around the world) to establish the minimum conditions that a bank should have to ensure stability. Over the past decades the solvency conditions have been fixing and updating, and thus confirming the agreements Basel I (1988); Basel II (2004), which is in force; and Basel III, which began in 2013 with the ultimate horizon of 2019. The Basel accords are in charge of setting the basic capital of the entities to address the risks taken by the characteristics ...

The vision of Blue Cross and Blue Shield of America, Inc. to provide stability and security to communities, members and the industry by investing in America’s Health is supported by its advertising and PR, sales and customer service and participating network of partners. Enabling healthy living is the collective mission of those stakeholders as they seek to advance local health concerns and provision of new resources through financial contribution, community outreach and resources distribution to industry partners focused on improving the American healthcare system. Blue Cross and Blue Shield companies have been vested in community-based healthcare initiatives ...

Historical Development of Global Regulations - Basel I & Basel II

In 1988, central bankers from different countries gathered in Basel, Switzerland to deliberate on banking regulations that would chat the way forward for providing minimum capital requirements for banks. Despite being enforced by law in 1992, the 1988 Basel Accord is currently regarded as outmoded. There have been numerous developments with regards to risk management, financial innovation, and financial conglomerate thus making the provisions of Basel 1 outmoded. In 2004, Basel II was published to supersede Basel I. The main aim was to create global standards for central banks. The banking regulators were required to control the capital that ...