Basel II
Basel committee clarifies calculation of expected operational risk losses for AMA
The Operational Risk Subgroup of the Basel Committee Accord Implementation Group (AIGOR) has released further guidance on how banks can adequately capture expected losses (EL) in their business practices.
Apra exec defends modifications
SINGAPORE – An executive from the Australian Prudential Regulatory Authority (Apra) defended the supervisor's decision to dramatically modify its approach to the Basel II standardised approach in a discussion paper released at the end of July.
Looking for clarity
The European Union's Markets in Financial Instruments Directive is set for implementation in April 2007. But there's plenty of confusion as to what the new regulations will entail – particularly with regards to 'best execution'. By Hann Ho
Algorithmics wins European credit registry contract
Algorithmics, the Toronto-based risk management software company, is to help run a planned Europe-wide credit data service.
MAS consults on Basel
SINGAPORE – The Monetary Authority of Singapore published a consultation paper that outlines proposed rules and guidelines on parts of its Basel II implementation programme in August.
Basel II to reduce capital on rated securitisation positions
The minimum capital requirements under the new Basel framework, also known as Basel II, will lower the amount of capital that implementing banks will be charged for rated securitisation positions, according to new research by FitchRatings, the rating…
Taking the slow road to Basel II
Brazil’s central bank published Basel II implementation guidelines at the end of last year,giving the country’s banks a firm timetable for the introduction of the new framework.What progress have banks made so far? John Ferry investigates
A Merton approach to transfer risk
Transfer risk is the risk that debtors in a country are unable to ensure timely payments of foreign currency debt service due to transfer or exchange restrictions, or a general lack of foreign currency. Although this risk is not extensively addressed in…
The twin challenges of Basel and MiFID
The connected problems of Basel II and MiFID compliance were the subject of a round table discussion group in London in mid-July
AIG group to tackle governance and data
BASEL, SWITZERLAND – The Accord Implementation Group's (AIG) operational risk working group is focused on tackling internal governance and data issues at its next meeting, according to an international regulatory source.
Basel II costs rising, says survey
A survey of banks in Europe and North America, sponsored by the consultancy firm Accenture, has found dwindling optimism and rising predicted costs for the implementation of Basel II, with the cost of compliance now estimated to be £2.5 billion for the…
UK banks set to spend £2.5bn on Basel II implementation, says Accenture
Complying with Basel II regulations could prove a long and difficult process, with UK banks estimated to spend £2.5 billion doing so, a new report suggests.
UK banks set to spend £2.5bn on Basel II implementation, says Accenture
Complying with Basel II regulations could prove a long and difficult process, with UK banks estimated to spend £2.5 billion doing so, a new report suggests.
South Africa outlines Basel II challenges
South Africa has to amend its banking regulatory framework to accommodate the requirements of the new Basel Capital Accord, Basel II, says Errol Kruger, South Africa's Registrar of Banks and general manager of the supervision department at the country's…
Delay of Basel II process in US will not affect Europe
The delay in the release of the Basel II Notice of Proposed Rulemaking (NPR) in the US is unlikely to affect the timeline of the Revised Framework in Europe, according to Patricia Jackson, the former head of the Financial Industry and Regulation Division…
Rating properties and their implications for Basel II capital
Robert Rauhmeier and Harald Scheule offer new insights on the verification of ratings. Within a consistent framework, the basic properties of association, calibration, discrimination and refinement in rating forecasts are defined and measures derived. It…
Basel II NPR to be delayed
WASHINGTON, DC – US federal banking agencies may revisit the Basel II implementation timeline, after additional analysis of the quantitative impact study four (QIS4) results. The additional analysis will delay the release of the Basel II Notice of…
A forward-looking adjustment for op risk quantification
Anupam Sahay and Ashish Dev present a general discussion of the basic elements of a rational framework for operational risk quantification. Then they focus on modelling the effect of internal controls and business environment on operational events. The…
Caruana calls for more banking industry support for Basel II
The chairman of the Basel Committee on Banking Supervision, Jaime Caruana, today called for more help from the banking industry in verifying that the Basel II framework is correctly calibrated.
Rating properties and their implications for Basel II capital
Internal ratings
Below the radar
The upcoming Basel II capital Accord’s impact on the global banking industry is expected to be profound, and hardly painless. The Accord’s ramifications for the investment and hedge fund management sectors, while not nearly as obvious,could contribute…
We need a common definition of ‘validation of internal models’ across countries, says OCC
The lack of a common definition of the ‘validation process’ of the internal credit risk measurement models across countries could cause problems in the cross-border risk management under the new Basel Accord, Basel II, according to New York-based Mark…
US financial institutions face major challenges under Basel II, says Financial Insights
Financial institutions in the US face tremendous challenges under the new Basel Accord, also known as Basel II, according to Financial Insights, a financial services research firm based in Framingham, Massachusetts.
US agencies issue QIS4 and LDCE survey materials
US financial regulators have issued survey materials for the fourth Quantitative Impact Study (QIS4) and the Loss Data Collection Exercise (LDCE) in preparation for the implementation of the Basel II capital framework in the US.