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Basel
II Compliance
In
June of 2004, The Basel Committee
on Banking Supervision (BCBS) endorsed
the new capital accord titled “International
Convergence of Capital Measurements
and Capital Standards: A Revised Framework”
more popularly known as Basel II.
This new accord includes three mutually
reinforcing pillars that work together
to contribute to the safety and soundness
of the financial system. |
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Pillar I
Minimum Capital Requirements - 8% of
minimum capital on risk-weighted assets
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| Total
Capital (Tier I & II) |
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| Credit
risk + market risk + operational risk |
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Pillar II Supervisory
Review Process
The central bank of the country is required
to ensure that each bank has sound internal
processes in place to assess the adequacy
of its capital based on a thorough evaluation
of its risks.
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Pillar III Market
Discipline
The market discipline pillar aims to improve
effective disclosure of a bank's risk
profiles, adequacy of its capital position,
etc.
Intelligroup offers a service
for Basel II implementations. The Basel
II research group at Intelligroup, comprised
of experts from the banking Industry and
SAP technology, has developed a methodology
for the implementation of Basel II using
SAP technology. This methodology is a result
of an extensive 18-month research project
on the various approaches to risk mitigation
required for Basel II compliance. We have
successfully implemented solutions for achieving
compliance at major European banks.
Intelligroup supports a
full suite of SAP applications and has a
highly skilled staff of SAP trained consultants
for Basel II implementations in the banking
industry.
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For more information click
here |
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