Getting the risk right

The requirements of the new Basel Accord are prompting some banks in Asia to begin implementing sophisticated credit systems, but there are still some obstacles to overcome. Clive Davidson reports


Given the events in the Asian markets in 1997/98 and the more recent corporate collapses in the US, there can be little need to remind banks of the importance of effective credit risk management. The Basel II proposals on capital adequacy reinforce the message, and in the US and Europe this is leading to the evolution of a new generation of credit risk management systems.

However, in Asia it appears that banks are moving more slowly from traditional methods of managing credit risk to

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Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

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