Basel II
Implementation Challenges

It’s been over a year now since Basel Committee published the final Basel II accord in June 2004. Regulators in the various countries are busy publishing the Basel II document applicable to their jurisdiction or are in the process of finalizing the same ( see page 12 for an overview on Basel II).

Basel II provides banks a bouquet of approaches from the basic to the advanced, however it is in the advanced approach that banks have a better chance of achieving reduction in capital charge. Basel II, unlike Basel I, is highly data intensive, more so in the advanced approaches for the measurement of Credit and Operational Risk.