Basel II


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Basel II

An agreement on international banking regulations dealing with how banks handle risk. Basel II establishes risk management and risk capital requirements in an attempt to ensure banks remain solvent. Basel II consists of three pillars. The first deals with capital requirements and mandates that banks exposed to more risk (which is itself categorized and quantified) must maintain sufficient capital. The second pillar provides an outline that regulators can use to deal with non-quantifiable forms of risk. The third attempts to promote market discipline.
References in periodicals archive ?
Important as Basel II may be to the banking industry and to the U.
Basel II is important to any business whose profitability is linked to cost of funds provided by banks.
Survey results published recently by Ernst & Young LLP under the title Basel II: The Business Impact, indicate that financial services institutions worldwide are taking Basel II seriously as bankers believe compliance will bring several important benefits, including more dynamic portfolio management, greater use of hedging and derivatives and an increased use of risk-based pricing.
one of the largest financial services providers in North America, has selected the Reveleus Basel II Solution to help build its credit capital calculation application for Basel II.
Basel II proposal will be available in the first quarter of 2006.
In the year since the final Basel II international capital framework was agreed upon, much has been written about the implementation of the accords, which aim to reinforce the stability of the banking system.
financial industry regulator the Financial Services Authority (FSA) has announced new rules for banking industry compliance with the credit risk requirements of the Basel II accord.
A business pressure group is hosting a series of seminars to raise awareness of the issues surrounding the Basel II framework for banking organisations and their significance to the SME sector.
Worldwide Computer Products News-16 June 2004-New Basel II compliant solution released by Misys and Almonde(C)1995-2004 M2 COMMUNICATIONS LTD http://www.
THE BANDWAGON OF REGULATOR-bashing is on another concert tour through the American banking landscape, and this time the subject of its increasingly shrill chorus is the proposed Basel II Accord.
The three core elements of the Basel II accord are:
Basel II models, stress testing are part of meeting Basel II advanced approach