Basel II Compliance Mapping & Proof

London - 28 November 2007

The CEO of Peach, a compliance, risk and change management company in the UK, today announced the release of a unique BCMP (Basel 2 Compliance Mapping & Proof) certification scheme for financial institutions and software vendors, to help them with their Basel 2 compliance issues and challenges.
The certification is based on Dr Abe Abrahami’s 34 year-experience and know-how that have helped blue chip companies and government agencies to save or increase revenue by an estimated $300 million US dollars (£150 millions Pounds Sterling).

Basel 2 is an international Accord that requires banks and financial services firms to have a more rigorous risk sensitive framework for the assessment of regulatory capital, and sets international capital adequacy standards to ensure that lenders can meet their obligations.

In 1988, the Basel Committee on Banking Supervision established a method of relating capital assets, using a simple system of risk weights and a minimum capital ratio of 8%, and this has been retained. It has a great impact on business practices, computer applications, scenario modelling, workflow and procedures.

Basel 2 has been introduced in early 2007 but many banks and financial institutions still struggle to comply and it will be many months before this compliance mandate is fully imbedded.

The Accord is constructed in 3 pillars.

Pillar 1 - Minimum Capital Requirements: Six subsections - dealing with calculation of minimum capital requirements, credit risk - standardised approach and internal ratings-based approach, securitisation framework, operational risk, trading book issues etc.
Pillar 2 - Supervisory Review Process: Five subsections - dealing with importance of supervisory review, 4-key principles for supervisory review, supervisory review process issues, other aspects of the supervisory review process, supervisory review process for securitisation etc.
Pillar 3 - Market Discipline: In two subsections - dealing with general considerations, guiding principles, disclosure requirement, interaction with accounting disclosures etc.

Basel 2 is affected by and affects Sarbanes-Oxley Act, MiFID (Markets in Financial Instruments Directive), Solvency 2 Accord, Asset & Liability Management (ALM), Anti-Money Laundering (AML), and other related frameworks.

Peach has an effective pill for your Basel 2 headache. Our purpose-built BCMP methodology and templates enable compliance faster and more cost effectively.
Instead of working in a silo, we can cross reference Basel 2 to the other relevant frameworks for overlaps, thus integrating Basel 2 with other self-attestation audit questionnaire checklists and processes, and avoiding duplication or triplication of information and implementation costs.

The Institute of Management Specialists accredits Peach’s proven and successful techniques and training courses.

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