Internal ratings-based (IRB) approach
IIF says much work remains on Basel II
The Institute of International Finance (IIF), the Washington, DC trade association of financial institutions, contends that Basel II still has a long way to go before it can be finalised, in its response to the Basel Committee for Banking Supervision’s…
European asset managers will feel the heat from CAD3
Compliance with the third capital adequacy directive (CAD3), a consultation paper recently released by the European Commission outlining the implementation of the Basel II Accord into EU legislation, may require European asset managers to hold…
Probing granularity
Basel II
Isda and BMA propose 35% charge for restructuring risk
The International Swaps and Derivatives Association (Isda) and the Bond Market Association (BMA) submitted a comment letter today to the Basel Committee on Banking Supervision in which they argued that, for the sake of capital calculations, loans hedged…
Preparation, quantification, implementation
While the South African Reserve Bank is in favour of Basel II, those tasked with preparing for the new capital accord are in no doubt that the risk quantification challenges presented by it are daunting.
FSA publishes Basel II/CAD implementation consultation
The UK's Financial Services Authority published its 'Report and first consultation on the implementation of the new Basel and EU Capital Adequacy Standards' in early July.
Fed publishes ANPR preview material
The US Federal Reserve has published material on its website that gives readers a preview of what can be expected from the forthcoming advance notice of proposed rulemaking (ANPR), which has a planned late-July release date.
Banks not ready for advanced IRB, says Trema speaker
Many international investment banks are not yet ready to implement the advanced internal-ratings-based approach to measuring credit risk, according to a controversial speaker at this week's Trema World Forum in Monaco.
Basel Committee publishes additional QIS3 results
The Basel Committee on Banking Supervision has published additional statistical data from the third quantitative impact study (QIS3), which was originally released on May 5.
CP3 Alert
CP3 Alert covers the most significant changes incorporated into CP3 by the Basel Committee, including alterations to the sections on securitization, operational risk, residential mortgages, credit derivatives, and the supervisory and public disclosure…
QIS3 results released by Basel Committee
A paper outlining the results of the third quantitative impact study (QIS3) was released by the Basel Committee on Banking Supervision yesterday.
US FDIC produces second Basel analysis paper
The US's Federal Deposit Insurance Corporation has published its second study of the Basel Accord revisions, titled Risk-based capital requirements for commercial lending: the impact of Basel II .
Basel II securitisation treatment too harsh, says Fitch
The treatment of securitisations under current proposals in the Basel Committee on Banking Supervision's Basel II capital Accord is likely to be "overly punitive", according to credit rating agency Fitch.
Taking it slow
Hong Kong's banks are, for the most part, targeting the standardised approach outlined in the new Basel capital Accord, but it is hoped that this will act as a catalyst for the further improvements in risk management.
Risk conference panellists issue warnings on US Basel position
Panellists on a roundtable devoted to the subject of the revisions to the Basel capital accords issued dire warnings about the implications of the US decision not to implement Basel II in its full form, but rather to select about 10 "internationally…
Book extract > Regulatory Issues on Credit Ratings
The art (and some science) of credit rating has been in place, at least in the US, for almost a century now. In the Foreword we learned that credit rating as a process has its humble beginnings in the early 1900s in conjunction with theburgeoning market…
Book extract > Regulatory Use of Credit Ratings: Implications for Banks, Supervisors and Markets
Barbara C. Matthews is Banking Advisor and Regulatory Counsel to the Institute of International Finance, Inc. (IIF). The views presented in this chapter, however, are her personal views and do not necessarily represent the views of the IIF or its members…
UBS: QIS3 results in increased capital, is not "fair"
UBS, the Switzerland-based financial institution, says its overall capital will increase under the Basel Accord revisions, as currently outlined in the third quantitative impact study (QIS3). In addition, other institutions have had the same results, the…
Meeting Basel II head on
Regulators are urging banks to update their rating methodologies in preparation for Basel II. Fitch Risk's Treeve Coomber thinks his new product will help to meet this challenge.
NY Fed’s Rutledge outlines US plans, IRB goals
William Rutledge, executive vice-president of the New York Federal Reserve Bank, outlined the next steps US regulators will take to implement the Basel Accords in the US.
QIS 3 results to be delayed to May
The release of the third Quantitative Impact Study (QIS3) results will be delayed until May.
What's coming, and when
This article covers significant dates over the next couple of months from an international, European, UK and US regulatory perspective.
US regulators restrict Basel II adoption amid agency infighting
In Congressional hearings on February 27, top US bank regulators sharply criticised the proposed Basel Accord revisions, and used their criticisms to justify plans to apply the new set of international banking regulations to only the top 10 banks in the…
KPMG Study highlights regional differences in Basel implementation
According to a recently released global study by the consulting arm of KPMG, the the international auditing firm, there are significant differences in how financial institutions in the US and Europe are preparing for the coming Basel Accord revisions.