06 Jun 2008, Victoria Pennington, Operational Risk & Regulation
PETALING JAYA: Malaysian banks are adopting the standardised approach (TSA) to Basel II but will need to become advanced measurement approach (AMA)-compliant by 2013 to keep up with global developments.
That is according to a new survey published by KPMG, Basel II in the Asia-Pacific Banking Sector Survey 2008: Implementing operational risk management. Conducted in the last quarter of 2007 with respondents from 35 banks in the Asia-Pacific, the survey that focused on operational risk management found that banks in mature banking countries have generally adopted the AMA. These mature countries include Australia, Hong Kong, Japan, New Zealand, Singapore, South Korea and Taiwan.
Among the emerging countries, however, Malaysia was found to be generally more ahead with seven in 11 banks currently implementing TSA, with most aiming to be AMA-compliant by 2010. If they failed to meet that deadline they could aim for a 2013 AMA implementation deadline, said John Lee, head of ASPAC financial risk management at KPMG at a press briefing on the survey.