Basel II to be re-calibrated for Asian banks

Simon Topping, executive director for banking policy at the Hong Kong Monetary Authority (HKMA), said in July that the proposed Basel II capital accord will be re-calibrated during the current consultation period to make risk weightings for Asia's banks more capital-neutral. "[The Basel Committee] has confirmed it is not trying to make banks in Asia hold more capital. This is actually an unwelcome side effect of how we've got it calibrated at the moment," said Topping. "This is a teething problem."

Banking analysts said Topping's comments should reduce fears that Asian banks will be treated unfairly under Basel II, which will determine in the first instance how much of their assets large international banks must set aside as reserve capital to guard against banking risks.

The HKMA, which is the banking regulator in China's special administrative region, said in comments on Basel II to the Basel Committee on Banking Supervision that Hong Kong's banks would experience significant

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net 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 Risk.net? View our subscription options

Most read articles loading...

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