Basel II
Regulators say main Basle II issues agreed
Global banking regulators believe there are now no substantial issues remaining with the complex Basel II rules on bank capital following an agreement on key issues announced today.
National regulators able to ‘opt out’ of Basel II maturity treatment
The Basel Committee on Banking Supervision, the architect of Basel II, has climbed down from its initial plans to force banks to include a full maturity adjustment on capital allocated against risk of defaulting loans, in its proposed mark-to-market…
Basel II op risk floor abandoned
Global banking regulators said today they would eliminate the floor on capital charges under the advanced approaches to measuring operational risk in the Basel II bank accord.
Isda welcomes “positive” Basel II statement
The progress statement on the Basel II bank accord issued today by global regulators was mostly positive, said officials at the International Swaps and Derivatives Association (Isda), the trade body for the world’s financial risk management industry.
National regulators able to ‘opt out’ of Basel II maturity treatment
The Basel Committee on Banking Supervision, the architect of Basel II, has climbed down from its initial plans to force banks to include a full maturity adjustment on capital allocated against risk of defaulting loans, in its proposed mark-to-market…
Regulators say main Basle II issues agreed
Global banking regulators believe there are now no substantial issues remaining with the complex Basel II rules on bank capital following an agreement on key issues announced today.
UK bankers fear capital floors higher under latest Basel II plans
The British Bankers' Association (BBA) is concerned that global banking regulators appear to have raised and expanded the application of the capital charges floor in the Basel II bank Accord, a BBA official said today.
BIS head defends complexity of Basel II
The most advanced approaches under the Basel II bank capital adequacy accord are likely to be complex if banks are to have the right incentives to measure and manage their risks, a senior international central banker said today.
Confident regulators expect to issue upbeat Basel II statement next week
Global banking regulators are expected next week to make an upbeat statement on progress with the controversial Basel II bank Accord. This follows several months of uncertainty in which some bankers doubted the Accord would ever see the light of day.
Credit card capital charges will be lower under Basel II
Major banks will probably have to set aside a lot less capital as a cushion against losses from defaulting credit-card holders under the Basel II bank Accord than they do now, global banking supervisors said.
Germany drops objections to Basel II after SME solution
Germany lifted its objections today to the Basel II bank Accord, welcoming a compromise on lending to small businesses that will be discussed next week by global banking regulators.
The maturity effect on credit risk capital
In a mark-to-market approach to credit risk capital, ratings or spread volatility has the effect of making longer-maturity loans more capital-intensive. This is incorporated in the current Basel II proposals via a maturity adjustment factor. Arguing that…
Regulators grow confident about Basel II calendar
Global banking regulators were expected to issue an upbeat statement in mid-July on progress with the controversial Basel II bank accord after several months of uncertainty in which some bankers doubted the accord would ever see the light of day.
Credit card capital charges will be lower under Basel II
Major banks will probably have to set aside a lot less capital as a cushion against losses from defaulting credit-card holders under the Basel II bank accord than they in effect do now, global banking supervisors said in early July.
Insurers embrace risk systems
Insurance companies have been slower than banks to adopt advanced risk modelling techniques and technologies. But regulatory changes and business exigencies are spurring them to adopt a new generation of risk and capital management systems.
Capital charges not enough to protect banks against op risk, says Moody’s
Protective capital is an incomplete line of defence against operational risk and effective op risk measurement and management should amount to more than just a capital allocation exercise enforced by regulators, a leading credit rating agency said in…
IMF seeks scrutiny of insurers' credit risk
The International Monetary Fund (IMF) says greater information about insurers' financial markets activities – including credit risk transfers – is needed before their implications for financial stability can be clearly ascertained.
Germany drops objections to Basel II after SME solution
Germany lifted its objections to the Basel II bank accord in early July, welcoming a compromise on lending to small businesses that would be discussed by global banking regulators at a mid-July meeting.
US central banker urges pillar 3 action now in light of scandals
Recent accounting scandals mean international banks should start improving their disclosure of risks and capital adequacy now and not wait for the pillar 3 disclosure provisions of the Basel II bank accord to take effect in late 2006, a senior US central…
Basel II experts shift focus to securitisation after SME solution
Experts working on the Basel II bank capital rules are focusing on the technically difficult issue of asset securitisation after agreeing a solution to the politically sensitive problem of how lending to small- and medium-sized enterprises (SMEs) should…
Firms Voice Frustration over FSA Continuity Plans
Firms say "toothless" disaster recovery guidelines will result in inconsistent plans.
Survey shows modifications could lower Basel II credit risk charges
Banks using a more complex risk measurement approach under the Basel II bank accord, if potential modifications are put in place, would have lower credit risk capital charges than under the current Basel I accord.
Basel regulators set to issue QIS 3 spreadsheets soon
Global banking regulators said in early July they would soon issue draft spreadsheets and an information package, including detailed instructions, on the crucial QIS 3 survey that in October will seek information on how banks would be affected by the…
Basel II models have little relevance for developing countries, US banker says
Banking supervisors in developing countries should focus on the risk environment in which banks operate because relying on banks to measure their own safety and soundness may give little useful information about a banking sector, a senior US central…