Basel 2 and the Meritocracy of the Credit: Considerations of Industrial Politics with Respect to the Optimization of the Fiscal Yield
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Abstract
The implementation of Basel 2 banking regulation has fuelled the applied research regarding internal rating models. The effectiveness and accuracy of credit risk modelling has improved in the last years. In the paper we propose to use these models in order to estimate the corporate survival probability and we demonstrate the better is the rating, the higher is the tax benefit for the italian Government. We finally suggest to pursue incentive schemes of Industrial Politics based upon the maximisation of the corporate survival probability.
Keywords
- banking regulation
- internal rating models
- incentive schemes of industrial politics