Basel Committee news and analysis articles - Risk.net

Technology

Preparing for the worst

Small and medium-sized banks in the US and Europe are bracing themselves for Basel II. Gallagher Polyn examines how these institutions plan to adapt to the new Accord.

01 Oct 2001

Basel Committee

Basel regulators cut op risk charge benchmark to 12%

BASEL - Global banking regulators formally acknowledged in late September some of the criticisms of their controversial proposal for an op risk capital charge. Their plan is to make large international banks set aside protective capital from 2005…

01 Oct 2001

Structured products

Basel regulators to study insurers' reaction to US attacks

BASEL - Bank regulators considering allowing op risk insurance a role in the proposed Basel II bank accord will study closely how the insurance industry deals with the massive insurance claims arising from the September 11 attacks in the US. So said…

01 Oct 2001

Structured products

EU welcomes Basel regulators' op risk paper

BRUSSELS - The European Commission, the ruling body of the European Union, welcomed the decision of global banking regulators to reduce the benchmark for an op risk capital charge to 12% from 20%, said a commission spokesman.

01 Oct 2001

Basel Committee

Sound practices paper expected in October

BASEL - International banking supervisors hope to issue their operational risk sound practice paper by the end of October, officials with the Basel Committee on Banking Supervision said in late September.

01 Oct 2001

Credit risk

Basel inflicts collateral damage

The current Basel proposals could lead to the global spread of the type of systemic loan loss problems Japan is now experiencing, argues John Frye of the Federal Reserve Bank of Chicago.

01 Oct 2001

Risk management

A new role for op risk insurance

As expected, the Basel Committee on Banking Supervision said in late September that it is prepared to consider a role for insurance in reducing operational risk capital charges proposed under the Basel II bank capital adequacy accord.

01 Oct 2001

Basel Committee

Basel II regulators lighten pillar 3 disclosure burden

BASEL - Global banking regulators said in late September they would significantly reduce the amount of information they would require from banks under a key provision of the proposed Basel II banking accord.

01 Oct 2001

Basel Committee

Double-counting fears ease as w -factor is removed from Basel II capital charge

BASEL - The so-called w -factor that bankers feared could result in double-counting of op risk under the Basel II bank capital accord will be removed from the capital charge provisions of the accord, global banking regulators said in September.

01 Oct 2001

Basel Committee

The shifting sands of Basel II

Four months after the Basel Committee on Banking Supervision closed the consultation period on its January 2001 draft for a new international capital Accord, it has already made major amendments to its proposal.

01 Oct 2001

Operational risk

Advanced measurement approaches

The September working paper on operational risk from the Basel Committee on Banking Supervision confirmed that global banking regulators are looking at a range of advanced ways of calculating op risk capital charges instead of a single method.

01 Oct 2001

Basel Committee

Pro-cyclicality in the new Basel Accord

Could Basel II worsen recessions? By backtesting the proposed capital rules to the last recession, D. Wilson Ervin and Tom Wilde argue that the increased risk sensitivity of loan portfolio regulatory capital in the new Accord could have unwelcome…

01 Oct 2001

Risk management

New op risk paper gets cautious welcome, but reservations remain

BASEL - Bankers gave a cautious welcome to the further thinking of global banking regulators on their controversial plans to make internationally active banks set aside capital against op risk under the Basel II banking accord.