The forgotten pillars of Basel II

Forgotten pillars

david-rowe
David Rowe

My column in the December issue of Risk, entitled Basel Faulty, elicited more numerous and more extensive comments than anything I have written in many years (Risk December 2012, page 68). Every response I received was supportive of my critical stance but they offered a variety of specific viewpoints.1 One recurring theme was that a more complex Pillar I capital calculation is having two effects: Resources are being siphoned away from bank-specific risk systems and into prescriptive complian