Resources for Basel II Capital Accord (Basel II)

Basel II Risk Management Deadline

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BANK NEGARA MALAYSIA was reported saying that all banking institutions in the country had already started adopting the new BASEL 11 Risk Management framework since Jan 2008 and hence there was no need for a deadline extension.

BANK NEGARA was reported by THE EDGE on Jul 9, 2008 saying that all banks in Malaysia are required to compute their capital adequacy ratios (CAR) under Basel II from Jan 2008.
" .... In addition, banking institutions adopting the new capital adequacy framework from 2008 are also subject to a capital requirement for operational risk based on either the basic indicator, standardised or alternative standardised approaches .... " said the Central Bank.

An exception applies to banks that have chosen to adopt the more advanced Internal Rating Based (IRB) approach to compute capital adequacy. These banks have been given an extension until 2010.

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