Jump to content


Photo
- - - - -

Getting Closer To My Masterwork


This topic has been archived. This means that you cannot reply to this topic.
75 replies to this topic

#76

  • Guests
  • 0 posts

Posted 01 May 2003 - 05:17 AM

Financial Times, May 01, 2003

Basel II sums up the future for credit risk By Charles Pretzlik and Peter Norman

It takes years of learning and a disregard for natural light to make sense of the mathematic equations that underpin the proposed new rules on bank capital.

Yet, for all the complexity of the hieroglyphics, it adds up to one simple purpose: to make the banking system more stable and efficient.

But if the rules' purpose is simple enough, implementing them is not. Banks will need to overhaul their systems and some are not happy about it.

The rules, published this week by the Basel Committee on Banking Supervision in its third and final consultative paper, will replace a set of rules from 1988, so-called Basel I.

. . .The incentive to underestimate credit risk is considerable. For a large bank with risk-weighted assets of 500bn, cutting the amount of capital by just 0.5 per cent would save it 2.5bn.

Many could save even more capital quite legitimately. This can be redeployed against new business. It is this which, for all the doubts, makes poring over all those hieroglyphics worthwhile.

Full story:

http://search.ft.com...arch&state=Form



Financial Times, May 01, 2003

US action could jeopardise Basel II - By Charles Pretzlik and Peter Norman

European supervisors warned yesterday that attempts to set new global financial standards were under threat from US moves to allow most American banks to opt out of revised capital adequacy rules.


Full story:

http://search.ft.com...arch&state=Form







Stock market portfolio giving you the runs? See Dr. Stool.

Take a subscribatory!
Download 
The Anals of Stock Proctology now!



The Daily Stool - Stock Market Message Board
Stool's Gold- Gold and Precious Metals Forum
Look Out Below Message Board

Support your local Stool Board.


The Al E. Greenspeuman designer line at Stoolmart. Get yours today! Click here now!
Get Mugged!


Dr. Stool's
Book Search

Enter title, author, or keyword
Just books
All Products





Old Stool Depository

Live Steaming Pile Chart