US FDIC produces second Basel analysis paper

The US's Federal Deposit Insurance Corporation has published its second study of the Basel Accord revisions, titled Risk-based capital requirements for commercial lending: the impact of Basel II .

The study explores the mechanics of risk-based calculation of commercial credit exposures under the Basel II revisions, and shows that the impact of the revisions on regulatory capital for syndicated loans depends heavily on the method that banks use to estimate future recovery rates on defaulted loans. “This illustrates the importance of regulatory decisions about the validation of banks’ internal risk estimates under Basel II,” the paper says.

The paper goes on to say that the Basel II

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here