Back to all announcements

Bank regulators urge more information sharing, clarify expected loss position in op risk AMA

BASEL, Switzerland, November 22 (Global Risk Regulator) – Global banking regulators today issued a paper aimed at fostering more robust information sharing between home-country and host-country supervisors in implementing the Basel II bank safety rules.

In a separate newsletter they also suggest that banks using advanced measurement approaches (AMA) to measuring operational risk, and wanting to base the capital charge on unexpected losses, must show that expected losses are highly predictable and reasonably stable.

The Basel Committee on Banking Supervision, the architect of the Basel II bank capital adequacy rules, said talks between home and host supervisors and with the major international banks they supervise confirm the need to develop more effective information-sharing arrangements between home and host supervisors. The Basel regulators said the need to develop cross-border understandings on the application of capital standards to international banking groups is essential for the successful implementation of Basel II.

The Basel Committee, which comprises top banking supervisors from North America, Europe and Japan and in effect regulates international banking, published its views in a paper – “Home-host information sharing for effective Basel II implementation”. Comments are invited by a February-28 deadline.