Basel Committee

Benchmarking asset correlations

Basel II stipulates that the asset correlation to be used in calibration of obligor risk weights is20%. Here, Alfred Hamerle, Thilo Liebig and Daniel Rösch use a parametric model to empirically obtain asset correlations from a large database of…

Tri-party repo push for Europe

Europe's tri-party repo market may be ready to take off, thanks to the combination of tighter credit conditions and the provision under Basel II, the new Accord on bank regulatory capital, for lower charges on collateralised financing.

Understanding the expected loss debate

The final draft of the new global Accord on bank regulatory capital – Basel II – has been delayed. A critical and unresolved issue is whether banks should include expected losses in their measure of credit risk. The IMF's Paul Kupiec reports on efforts…

Sponsor's article > When is best practice good enough?

A dramatic change in banking regulation has been the move from prescriptive procedures towards 'best practice' risk management. Disagreements about how quickly the new approach can be applied to credit risk is central to arguments about revising Basel II.

EU Commission outlines region's Basel II impact

More than 1,000 investment firms and 9,322 banks will implement the EU's capital adequacy directive, according to Patrick Pearson, head of banking and financial conglomerates unit of the internal markets division of the EU Commission.

A-IRB is overly prescriptive, say US banks

Several US banks would like to see a full internal models-based approach to regulatory capital. According to their response to the Advance Notice of Proposed Rulemaking (ANPR) on the implementation of the new Basel Capital Accord, the banks said the…

Fed's Ferguson defends US position on Basel

The US approach to regulatory capital is "perfectly consistent" with the spirit of the new risk management proposals from the Basel Committee, said Roger Ferguson, vice-chairman of the board of governors of the US Federal Reserve System, this week.

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