Latin banks face up to Basel II

Latin American countries should focus on adopting better risk management practices rather than rushing to implement Basel II, according to speakers at a seminar held in Mexico in July.

At The New Basel Capital Accord: Challenges and Opportunities for the Americas event, Jaime Caruana, chairman of the Basel Committee and governor of the Bank of Spain, said: “Financial institutions in Latin America are not paying attention to the most important issues of Basel II – namely the incentive to improve risk management.”

“We want banks to manage risk correctly, not to manage Basel II correctly, and hope the Accord will catalyse dialogue about risk management in Latin America,”