Basel Committee

Basel Committee forms validation subgroup

The Basel II Accord Implementation Group (AIG) has established a subgroup to examine issues related to validation. The subgroup is chaired by Lorey Hoffman of the Canadian Office of the Superintendent of Financial Institutions, and consists of both Basel…

How op risk mitigants affect regulatory capital

For banks to develop an efficient operational risk hedging strategy, they need to consider the capital impact of the four main mitigant types: insurance, business continuity management, controls and staff training. By Niclas Hageback

CAD makes slow progress through Parliament

BRUSSELS -- The progress of the Capital Adequacy Directive (CAD) in the European Parliament remains slow. Although the European Commission (EC) was keen to have the legislation voted on before the summer, its introduction for official discussion has been…

New corp gov subgroup for Basel

BASEL, SWITZERLAND -- The Basel Committee on Banking Supervision has launched a new subgroup of the Accord Implementation Group, according to a source within the Basel Committee. The group is updating the corporate governance guidance that the Committee…

Below the radar

The upcoming Basel II capital Accord’s impact on the global banking industry is expected to be profound, and hardly painless. The Accord’s ramifications for the investment and hedge fund management sectors, while not nearly as obvious,could contribute…

From Basel II to Basel III

Financial institutions face major challenges in modelling credit portfolio risk, particularly in the field of CDOs. Walter Schulte-Herbrüggen and Gernot Becker argue that the main challenge will be in model testing, due to the increasingly customised…

Setting a timetable

Regulators in Australia and Japan are the latest to set deadlines for their banks to comply with Basel II, and both differ slightly from the Basel Committee’s schedule. Nick Sawyer reports

Reducing risk through insurance

In this article, Silke Brandts describes a general algorithm for quantifying the risk-mitigating impact of operational risk insurance. She then presents a simple haircut approach to incorporate residual risks inherent in the insurance contracts into the…

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