Indian data sharing represents a step towards Basel II but transparency issues remain
MUMBAI – Indian banks are to launch a data-sharing consortium for operational and credit risk losses to aid Basel II implementation. The Credit Operational Risk Data Exchange (Cordex) will be a joint venture by the Indian Banks’ Association (IBA) and major Indian banks seeking to address the absence of requisite information for the switchover to the new capital requirements regime.
Banks already on board include Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, IDBI, Indian Overseas Bank, Punjab National Bank and Union Bank of India. The IBA has now sought registration for the new loss data-sharing corporation and says it expects more banks to sign up.
Indian banking has faced industry criticism over its bold claims of Basel II compliance. A few banks with overseas presences have partly implemented Basel II practices, while the domestic market remains largely untouched.
The IBA has pointed out that the new consortium is in the initial stage of its formation, with key details of transparency still to be worked out, such as how operational risk losses will be relayed to the consortium and published between the banks.
More on Risk Management
ABSTRACT We propose a new numerical approach to solving high-dimensional partial differential equations (PDEs) that arise in the valuation of exotic derivative securities. The proposed method is extended...
ABSTRACT The aim of this paper is to present the set-up of a behavioral credit-scoring model and estimate such a model using an auto loan data set of one of the largest multinational financial institutions...
ABSTRACT According to Basel financial regulations, the use of external data is indispensable to the implementation of an advanced measurement approach (AMA) for calculating operational risk capital....
Aggregation not a priority for regulators in Asia
Sign up for Risk.net email alerts
Sponsored video: Elseware
Oxford professor David Vines argues that the carrot is as important as the stick
Sponsored webinar: IBM
Watch highlights of this year's London conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.