Latest progress on Basel II

Jaime Caruana, chairman of the Basel Committee on Banking Supervision, used GARP’s recent 5th Annual Risk Management Convention as a platform to provide an update on the latest Basel II situation.

Mr. Caruana said that the committee continues to move forward on the basis of its commitment made last October to finalise outstanding issues by mid-2004 and said that significant progress had been made in a number of important areas.

Mr. Caruana stated that by calibrating regulatory capital to unexpected losses only the Basel Committee had found a better solution which will make regulatory capital requirements for credit losses more consistent with banks' own economic capital models. Significant progress had also been made in the areas of securitisation, credit risk mitigation and operational risk, he said.

Read the full text of the speech /www.bis.org/review/r040301d.pdf

•Date: 3rd March 2004 •Region: Worldwide •Type: Article •Topic: Operational risk
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