Basel II will be modified, says Canadian bank regulator

A survey of financial institutions’ views on the Basel II capital accord is expected to result in global banking regulators modifying some of the accord’s controversial aspects, according to a Canadian bank regulator involved in the survey.

Specifically, banks are reporting difficulty understanding how to implement the internal ratings-based approaches to calculating how much capital they will have to set aside to guard against banking risks, said Ian Gibb, regulator at the Canada Office of the Superintendent of Financial Institutions, which regulates Canadian banks.

QIS 1
The findings are emerging from the Quantitative Impact Survey, known as QIS 1, which was issued in April by the Basel Committee on Banking Supervision. The

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