|
|
|
|
|
|
Basel ii Accord -
Sections 1 to
5 |
|
Introduction
1.
This report presents the outcome of the Basel Committee on
Banking Supervision’s
(“the Committee”)
(1) work over recent
years to secure international convergence on
revisions
to
supervisory regulations governing the capital
adequacy of internationally active
banks.
Following
the publication of the Committee’s first round
of proposals for revising the
capital
adequacy
framework in June 1999, an extensive
consultative process was set in train in
all
member
countries and the proposals were also circulated
to supervisory authorities
worldwide.
The
Committee subsequently released additional
proposals for consultation in
January
2001 and April 2003 and furthermore conducted
three quantitative impact
studies
related
to its proposals. As a result of these efforts,
many valuable improvements have
been
made
to the original proposals. The present paper is
now a statement of the
Committee
agreed
by all its members. It sets out the details of
the agreed Framework for
measuring
capital
adequacy and the minimum standard to be achieved
which the national supervisory
authorities
represented on the Committee will propose for
adoption in their respective
countries.
This
Framework and the standard it contains have been
endorsed by the Central
Bank
Governors and Heads of Banking Supervision of
the Group of Ten countries.
(1)
The Basel Committee on Banking Supervision is a
committee of banking supervisory authorities
that was established by the central bank
governors of the Group of Ten countries in 1975.
It consists of senior representatives of bank
supervisory authorities and central banks from
Belgium, Canada, France, Germany, Italy, Japan,
Luxembourg, the Netherlands, Spain, Sweden,
Switzerland, the United Kingdom, and the United
States. It usually meets at the Bank for
International Settlements in Basel, where its
permanent Secretariat is
located.
2.
The Committee expects its members to move
forward with the appropriate
adoption
procedures
in their respective countries. In a number of
instances, these procedures
will
include
additional impact assessments of the Committee’s
Framework as well as further
opportunities
for comments by interested parties to be
provided to national authorities.
The
Committee intends the Framework set out here to
be available for implementation as of yearend
2006. However, the Committee feels that one
further year of impact studies or
parallel
calculations
will be needed for the most advanced approaches,
and these therefore will be
available
for implementation as of year-end 2007. More
details on the transition to
the
revised
Framework and its relevance to particular
approaches are set out in paragraphs
45
to
49.
3.
This document is being circulated to supervisory
authorities worldwide with a view
to
encouraging them to consider
adopting this revised Framework at such time as they
believe
is consistent with their broader
supervisory priorities.
While
the revised Framework has been designed to
provide options for banks and banking systems
worldwide, the Committee acknowledges that
moving toward its adoption in the near future
may not be a first priority for all non-G10
supervisory authorities in terms of what is
needed to strengthen their supervision.
Where
this is the case, each national supervisor
should consider carefully the benefits of the
revised Framework in the context of its domestic
banking system when developing a timetable and
approach to implementation.
4. The fundamental objective of the
Committee’s work to revise the 1988
Accord (2)
has
been
to develop a framework that would further strengthen the soundness
and stability of the
international
banking system while maintaining sufficient
consistency that capital
adequacy
regulation will not be a
significant source of competitive inequality
among internationally
active
banks.
The
Committee believes that the revised Framework
will promote the adoption
of
stronger risk management
practices by the banking industry, and
views this as one of its
major
benefits. The Committee notes that, in their
comments on the proposals, banks
and
other
interested parties have welcomed the concept and
rationale of the three pillars
(minimum
capital requirements, supervisory review, and
market discipline) approach on
which
the revised Framework is based.
More
generally, they have expressed support for
improving capital regulation to take into
account changes in banking and risk management
practices while at the same time preserving the
benefits of a framework that can be applied as
uniformly as possible at the national
level.
(2)
International Convergence of Capital Measurement
and Capital Standards, Basel Committee on
Banking
Supervision (July 1988), as
amended.
5.
In developing the revised Framework, the
Committee has sought to arrive
at
significantly
more risk-sensitive capital
requirements that are conceptually sound
and at the
same
time pay due regard to particular features of
the present supervisory and
accounting
systems
in individual member countries.
It
believes that this objective has been
achieved.
The
Committee is also retaining
key elements of the 1988 capital adequacy
framework,
including
the general requirement for banks to hold total
capital equivalent to at least 8%
of
their
risk-weighted assets; the basic structure of the
1996 Market Risk Amendment
regarding
the
treatment of market risk; and the definition of
eligible capital.
|
| | | |
|
Sarbanes Oxley
Training
Courses
designed to provide with the knowledge and skills needed to understand and
support Sarbanes-Oxley compliance.
www.sarbanes-oxley-training.com
Basel ii
Training
Courses
designed to provide with the knowledge and skills needed to understand and
support Basel ii compliance.
www.basel-ii-training.com
Sarbanes Oxley
Act
Sarbanes
Oxley Compliance: Books, Software, Certification, Training and
Resources.
www.sarbanes-oxley-act.biz
Basel ii Accord
Basel ii
Compliance: Books, Software, Certification, Training and
Resources
http://www.basel-ii-accord.com/
Compliance Training
Sarbanes
Oxley, Basel ii, Data Protection Directive, Information Security
Training
www.compliance-training.net
|
|