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.

Because it has taken a risk-based approach to supervision for over 10 years, the South African Reserve Bank (SARB) has been an enthusiastic proponent of Basel II from the start. It has worked with the committee of non-G10 countries that has contributed an emerging markets perspective to the development of new capital Accord, and participated in the Core Principles Liaison Group of the Bank for International Settlements’ Basel Committee on Banking Supervision. It was also involved in the