CEBS addresses Basel II implementation issues

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LONDON – The Committee of European Banking Supervisors (CEBS) has published a paper entitled Range of practices on some Basel II implementation issues, which has specific cross-border relevance.

CEBS focuses on providing advice on the implementation and practical application of European Community legislation and CEBS guidelines. It also focuses on practical convergence in the day-to-day application of this legislation and these guidelines to cross-border business.

In the past year, CEBS has been collecting and analysing information about the Basel II implementation issues cross-border banking groups and their supervisors believe to be the most challenging. Some of the issues have directly been raised by the Industry Platform on Operational Networks; others have been raised by supervisors based on the experience they have gained so far. The CEBS paper looks into the most important issues analysed so far, providing a concrete answer for some and for others listing a catalogue of pragmatic approaches that, based on the experience both of supervisors and banking groups, seem to be broadly consistent.

The approaches identified in the paper are real-life examples of specific applications of the Capital Requirements Directive and CEBS guidelines to the banking groups represented in the sample of banks taking part in the work of CEBS in relation to operational networking. As a result, they are not intended to be generalised solutions or to be read by institutions as a limitation on the identification of approaches that might be better suited to their specific needs.

Click here for a copy of the paper.