Niche lenders brace for Basel

Banks with niche lending businesses are scrambling to assemble enough data to allow them to benefit from Basel II's most advantageous capital provisions. Gallagher Polyn reports on one successful initiative.

Last year, a consortium of leading project finance lenders and Standard & Poor’s Risk Solutions, the rating agency’s consulting division, teamed up to tackle a looming problem for niche lenders: where to get adequate expected-loss data to qualify for the advanced internal ratings-based (IRB) approach under the Basel II capital Accord?

In recent years, with the aid of consultants and national banking associations, banks have been collecting and validating expected-loss data for their

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 or view our subscription options here:

You are currently unable to copy this content. Please contact 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 View our subscription options

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.

The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

You need to sign in to use this feature. If you don’t have a 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