Basel II – news

2007-2008:the Basel II directive is effective in all European countries. EU Supervisors have published their version of the new CRD, and some banks, (some of our customer included) are reporting the Corep Basel II to their supervisor with our support.
CEBS and all other supervisors are busy with the finetuning of several aspects of the new directive, such as large exposures, the new home host supervisory regulation.
The 1988 Basel II Accord on capital has been completely being revised. The Accord affects all financial institutions, banks, fund management companies and portfolio management companies. It provides for the bank's capital being in adequacy with its risk profile, being subject to control by the supervisory authorities, and with an obligation for market reporting.
This Accord has been finalised in 2004, and is in effect now several countries. All banking activities are effected. It directly impacts credit risk, credit administration, prudent assessment of the bank's credit portfolio, operational risk management, shareholdings management, securitization, rates risk and liquidity risk.
It enters into effect in 2007, but within the transition period but the banks will already have to demonstrate know-how acquired from several years of risk management, implying that financial institutions that have not started putting their risk management system in place in 2003 are late.

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