Calming supervisory fears

Asked what gives them the most cause for concern when it comes to Basel II, the bulk of the 70 or so Asian banks that took part in a recent survey by consultants KPMG pointed not to the complexity of the new Accord, nor to the tight implementation schedule as their number one anxiety. The area that elicited most unease from Asian banks was actually Pillar II, the part of the Accord covering supervisory review.

In fact, 71% of the respondents in Asia identified this as the area of most concern

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