On a previous thread, regular commenter Shyamsundar Baliga made the point that a recent list of global banking regulations put out by the BCBS does not cover Basel II implementation approaches by any of the national regulators. Having had a look round (well, a quick Google) I could not find any lists.
I think this would be a good Wikipedia page, or at least a good addition to the current one on Basel II. If you would like to put down notes on your own national regulator’s approach(es) to Basel II implementation please put them down here. Once there are a few I will transfer them to the Wikipedia page – or, like anything on Wikipedia, you can just put them in there.
Suggested format (I will work it into a decent table):
Country: Australia
Regulator: APRA
Approaches Allowed:
Credit Risk: All
Operational Risk: Standardised, Advanced
Market Risk: All
Implementation date(s): 1 January 2008 – All approaches
Notes: Some banks (NAB, BankWest) are delaying full implementation until they are accredited for the advanced approaches an are staying on the Basel I based regulations until this is complete, expected 1 July 2008.
Links: Prudential Standards (the implementing regulations)
Feel free to suggest changes or further information to add in.
1 comment
14 January, 2008 at 12:22 am
Shyamsundar Baliga
Sounds good. Lets start with India.
Regulator: RBI
Guidelines issued: April 2007 (see link http://rbidocs.rbi.org.in/rdocs/content/PDFs/77065.pdf)
Approaches allowed:
Credit risk: Standardised
OpR: BIA
Mkt risk: Standardised Duration approach
Implementation dates: March 31, 2008 for “internationally active banks” – several major banks will be covered. Other commercial banks are also encouraged to move from Basel I to Basel II at the same time, latest March 31, 2009.
Prudential floor: 100%, 90% and 80% in first year, second year and third year of implementation, respectively.
Minimum capital ratio: 9% (capital to risk-weigthed assets). Tier I ratio has to be at least 6%.
Advanced approaches: The regulator states “..a separate communication in this regard will be issued to banks at a later date..”.
I invite bankers from all countries to describe implementation status of your respective countries in a similar manner.