Basel Committee alters securitisation, credit risk mitigation, and clarifies Pillar II approaches

The Basel Committee on Banking Supervision issued a statement yesterday altering its approaches to securitisation and credit risk mitigation in Pillar I.

The statement also said that the committee would be issuing a paper shortly on the group allocation problem for operational risk under the advanced measurement approaches. Last, it tried to clarify the wording in Pillar II, to lay to rest concerns raised by banks during the comment process.

Securitisation and credit risk mitigation have been two of the thornier areas for the Basel Committee in recent months. The financial industry has been deeply unhappy with the approaches in these two areas

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