Resources for Basel II Capital Accord (Basel II)

Banks to increase use of credit portfolio risk models, says Fitch

investmentexecutive.com

The increasing use of credit portfolio risk models by financial institutions will accelerate with the establishment of Basel II, says Fitch Ratings in a news report.
“Basel II adapts many of the concepts and techniques used by large financial institutions in their own internal credit risk models for supervisory purposes,” says Dr. Gary van Vuuren, senior director in Fitch’s Financial Institutions team. “Fitch believes that the anticipated convergence between economic capital and regulatory capital frameworks has been a positive impetus to further refine and more broadly spread advanced risk measurement and management practices such as credit portfolio risk modelling amongst financial institutions.”
In its report, Fitch outlines the factors that influence the degree of comfort the agency derives from an institution’s credit risk models in the assignment of ratings.

View the Resource

Share or bookmarklet this web page at: