Latest articles from Staff

Newsletter Jul/Aug 2006: Basel II and IFRS overstate securitisation risks

LONDON—The Basel II capital adequacy standard may, in some cases, overstate banks’ risks in securitisation transactions, according to Fitch Ratings, the credit rating agency. Similarly, the adoption of the International Financial reporting Standards (IFRS) also results in an over statement of banks’ retained risks in securitised assets, the agency says in a special report published in late July.*

Newsletter Jul/Aug 2006: US and Europe closer than appears on Basel II

PARIS – The US and Europe are closer than appears on the implementation of the international Basel II bank safety rules, according to one of Europe’s most senior banking regulators.

Newsletter Jul/Aug 2006: NY Fed’s Walter is new Basel Secretary General

BASEL, Switzerland – Stefan Walter, a senior vice-president at the Federal Reserve Bank of New York, has been appointed Secretary General of the Basel Committee on Banking Supervision with effect from September 4.

Newsletter Jul/Aug 2006: Basel mulls future role for Canada’s Le Pan

BASEL, Switzerland – Global banking regulators are pondering what future role Nick Le Pan, who in July surprised Canada’s financial sector by announcing his intended resignation as head of the country’s financial services watchdog body, can play in aiding the worldwide implementation of the Basel II bank safety rules.

Newsletter Jul/Aug 2006: Hong Kong capital plans are on target for January

HONG KONG – Adoption of the Basel II bank safety rules is something that is achievable by all banks in Hong Kong by the planned introduction date of January, 2007, according to Simon Topping, who heads the banking policy department at the Hong Kong Monetary Authority (HKMA).

Newsletter Jul/Aug 2006: Quadrant SAB2 application under way in UK and Africa

PLYMOUTH, England – Risk management consultants Quadrant Risk Management (International) said in July that the first two implementations of its “SAB2” Basel II compliance application are under way, one in the UK and the other in Africa. SAB2 is Quadrant’s solution to compliance under the standardised approaches to credit and operational risk under the Basel II bank capital adequacy rules.

Newsletter May 2006: Discretions threaten international consistency

National discretionary options highlight the challenge facing regulators in achieving the aim of consistent international bank capital standards under Basel II, according to credit rating agency Standard & Poor’s.

Newsletter May 2006: NPR may undermine benefits of Basel II

US supervisors may undermine much of the benefit hoped from Basel II by making the advanced approaches to measuring credit and operational risk extremely dependent on their decisions, a leading regulatory analyst said in late April.

Newsletter May 2006: Italian banks gear up for Basel II, despite scandals

Preparation for new capital rules on track regardless of financial failures and takeover battles. Big advances in risk management

Newsletter May 2006: Regulators leave Basel II scaling factor unchanged

BERLIN – As expected, global banking regulators decided to leave the current calibration factor for the Basel II capital rules unchanged after reviewing the results of the most recent test of the complex rules, the last such exercise before the regime goes into effect in many countries in January.