Banks will get Basel II survey spreadsheets tomorrow

Some 300 banks in 36 countries will tomorrow receive draft spreadsheets and an information pack relating to the crucial QIS 3 survey for the complex Basel II bank capital Accord, global banking regulators said today.

The package will give banks an idea of the data they need to collect ahead of the issue of QIS 3, the third Basel II quantitative impact study, on October 1.

QIS 3 will seek information on how banks will be affected by the risk-based Basel II bank capital adequacy Accord that will determine from late 2006 how much capital they must set aside as a protective cushion to guard against losses from banking risks.

On October 1, the banks will be given the risk-weight functions and formulas they will need to apply to the data they’ll start collecting from tomorrow, said technical experts with the architect of Basel II, the Basel Committee on Banking Supervision. Banks will be asked to return their QIS 3 replies by December 20.

The questions asked and instructions given in QIS 3 will give banks a clear idea of the final shape of the much-delayed and controversial Basel II Accord. Basel II will replace the current, and simpler, Basel I capital Accord that dates from 1988.

The sending of the draft spreadsheets tomorrow follows the Basel Committee’s agreement last week on several outstanding issues that had held up progress with an accord – originally scheduled for implementation in early 2004.

QIS 3 will involve banks from both the Group of 10 (G10) leading economies and non-G10 countries. It will include both large, internationally active and diversified banks, as well as more specialised banks.