Insurers must change their ways to comply with Basel II

- By Risk Staff
- 01 Jul 2003

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

New York – The Basel Committee on Banking Supervision has granted financial institutions the option of using insurance to offset operational risk charges under the advanced measurement approach in the third consultative paper (CP3) – but not without reservations. One of the biggest issues the Basel Committee, and many national financial supervisors, have with the use of insurance as a capital offset is that the claims payment processes employed by carriers can be long and tortuous. Banks can’t

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 print this content. Please contact info@risk.net to find out more.

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

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email info@risk.net

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email info@risk.net

More on Risk management

Risk management

Don’t count on repo to monetise liquidity books, say experts

QT could force banks to sell bonds during stress, underlining need for fair value accounting

02 Oct 2023

Regulation

US Basel endgame hits clearing with op risk capital charges

Dealers also fret about unlevel playing field compared with requirements in the EU

25 Sep 2023

Risk management

Calibrating interest rate curves for a new era

Dmitry Pugachevsky, director of research at Quantifi, explores why building an accurate and robust interest rate curve has considerable implications for a broad range of financial operations – from setting benchmark rates to managing risk – and hinges on…

21 Sep 2023

Risk management

Bankers – shape up or ship out, says UBS compliance head

Tough approach comes as ECB prepares new guidance on conduct risk for 2024 release

20 Sep 2023

Risk management

Op risk data: WhatsApp fines keep on coming

Also: ‘Five families’ stock-lending cartel pays up; double hit for Wells Fargo. Data by ORX News

18 Sep 2023

Risk management

The impact of emerging risk on credit portfolio management

Bank credit portfolio managers are increasingly finding that non-financial risks, such as cyber risk and climate risk, are falling under the remit of credit portfolio management (CPM). This will also be impacted by the upcoming Basel III Final Reforms,…