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 ?
Global Banking News-November 3, 2014--Vietnam's banks to apply Basel II
The Basel III capital adequacy standards include key amendments to the Basel II standards, primarily an increase in the total ratio of the regulatory capital and a redefinition of the regulatory capital as part of a package of criteria targeting quality improvement, he said in an exclusive interview to KUNA.
The Basel II accord has been prepared on the basis of three pillars: minimum capital requirement, supervisory review process and market discipline.
PWC), the leading firm in providing Basel II advisory services in its pursuit to strengthen risk management in NBP.
UAE banks must utilise a more diverse range of risk management tools and practices to ensure their competitiveness across the world as Basel II gets fully implemented, said a study conducted by The British University in Dubai (BUiD).
Egypt's central bank announced earlier this month that shifting to a Basel II capital adequacy framework will be the main focus of the next wave of banking reforms.
It made some interesting assertions, many of which I support, but I must challenge its statement that the Basel II capital adequacy regime was somehow to blame.
He addresses this question through interrelated analysis of the following: the rules for domestic bank capital regulation in Basel II, arguing that the internal ratings-based (IRB) approach of Basel II, developed during the negotiations and essentially untested, represents, at best, a leap of faith; the contribution of the specifically international character of Basel II to achieving national policy goals, suggesting that the introducing the IRB approach as a basis for domestic regulation exposes more and more countries to infirmities, while the difficulties of effective monitoring of implementation limits benefits from common adoption; and comparison of alternatives, including the status quo.
MANAMA: The Central Bank of Bahrain (CBB) will host a workshop on the challenges arising from the implementation of the Basel II accord.
Since Basel I was introduced it has broadly been adapted in over 100 countries; however, over time, it has became clear that, with increasingly sophisticated products and markets, the risk to which a bank was exposed cannot be accurately assessed with the black-and-white rules of Basel I, so the 1999 Basel Committee introduced Basel II in response to this.
Intertec Systems sponsors Basel II Risk Management Forum in DubaiThe event will bring together industry stakeholders involved in Risk Management from leading Local and foreign financial institutions
In the coming weeks, New Zealand banks will release quarterly disclosure statements which will reflect the Reserve Bank's new Basel II capital adequacy requirements for the first time.