Basel accord brings segmentation issues for systems companies

Basel II will segment the market for firms providing IT services to banks.

The Basel II bank capital accord will accentuate market segmentation for firms supplying software, data and professional services to banks complying with the complex rules proposed by global banking regulators.

That’s because the accord, which will permit banks to use their own internal risk management models to set the levels of protective reserve capital they need, will clearly lead to more complex risk management processes.

The methodologies introduced by Basel II also have deep

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