FSA publishes Basel II/CAD implementation consultation

The UK's Financial Services Authority published its 'Report and first consultation on the implementation of the new Basel and EU Capital Adequacy Standards' in early July.

Numbered as ‘Consultation paper 189’, the document follows on from discussion paper 13, which was published in July 2002. It sets out proposals for the implementation of both the Basel II revisions and the EU capital adequacy directive (CAD), with particular focus on the internal ratings-based (IRB) approaches for credit risk and the advanced measurement approach (AMA) for operational risk. The document does not consult on either Pillar II or Pillar III of Basel II, which focus respectively

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