Regulators acknowledge change needed

Global banking regulators have conceded that certain areas of their Basle II bank accord proposals needed further adjustment in order to meet key objectives of the accord.

Regulators on the Basel Committee on Banking Supervision, who are drawn largely from the Group of 10 leading economies, said in particular they anticipated the need for reductions in the basic calibration of foundation internal ratings based approaches for credit risk, both for corporate and retail portfolios.

The Committee’s views were expressed in its late-June statement postponing the coming in to force of Basel II by a year to 2005 from 2004. There will now be a third consultative paper