
The
new Basel Capital Accord (Basel II) will replace the 1988 Basel I Capital
Accord and have significant implications for the financial services industry.
The goal of the Accord is to make international financial systems more stable
and to put in place incentives for banks to adopt better risk management,
risk mitigation and risk pricing techniques.
The new Accord is built upon three mutually reinforcing 'pillars':
Pillar 1 - Minimum capital requirements with new rules for credit and operational risk and an increased emphasis on banks' own internal capabilities in determining minimum capital requirements.
Credit Risk:
> Standard Approach
> Foundation IRB Approach
> Advanced IRB Approach
Operational Risk:
> Basic Indicator Approach
> Standardized Approach
> Advanced Measurement Approach (AMA)Pillar 2 - Supervisory review covering an institution's capital adequacy and internal assessment process.
Pillar 3 - Market discipline through effective disclosure to encourage safe and sound banking practices.
The Basel II
Accord places new emphasis on banks' internal controls, provides increased
flexibility in risk management and enhanced risk sensitivity.
The ADRM Basel II Solution provides a comprehensive consistent data architecture
upon which to construct the Basel II pillars consistently, efficiently and
economically.
October 24
London, UK
"ADRM
Announces BASEL II Foundation Models to
Accelerate BASEL II and IRB Initiative"
Copyright © 2010 ADRM Software
All Rights Reserved



SOLUTION DATA MODELS
Credit Reporting
STP / Securities Back Office
Clinical Trials
ePedigree
Basel II