These include: (i)  Reduced charge-offs through better default-prediction and collection processes  (ii)  Improved pricing discipline on loans and risk selection through risk-based pricing to and reduced risk from new business opportunities.
3  Kevin S. Buehler, Vijay D’Silva, and Gunnar Pritsch, “The Business Case for Basel II.” The McKinsey Quarterly 2004, Number 1  4  The amount of risk capital, assessed on a realistic basis, which a bank requires to cover the risks that it is running or collecting.