How do you measure shareholder value generated by factors? ATKearney
The current economic crisis and the new capital adequacy requirements that will be shortly imposed by Basel II have stressed the awareness that capital is a scarce resource to allocate while complying with two fundamental requirements: maximize returns and follow a portfolio management policy. All main factoring products, except the marginal category of the “receivables management, no finance, no guarantee” offering, require a capital absorption that is defined by regulatory authorities. However, to date, capital requirements are imposed on a consolidated basis. Therefore, as most factors belong to banking groups, they do not need to satisfy capital standards on their own, but on a group level. In particular:
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