Data crisis coming, says S&P

Financial institutions must start sorting through their large amounts of credit risk data to recognise the right information they need for the purposes of Basel II credit risk measurements, according to Ken Hoffman, the director of Digital Feed Products, Credit Information Services at Standard & Poor's.

Hoffman said banks should start evaluating the data they have to select the right information for credit risk measurements ahead of time so that they can reduce compliance risk when Basel II implementation time comes. The availability of more than enough credit risk data does not mean the compliance with credit risk requirements will take a short time.

“We are getting a lot more inquiries about Basel II compliance from our European clients as compared to the US, although our client base is

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