Basel II
The requirements of Basel II pervade all aspect of a bank’s organisation, from boardroom culture to rating models to the systems to collect and manage vast volumes of data.
We can help banks at any stage of their Basel II process – assessing the impact of moving to Basel II, identifying the gaps in their processes to achieve Basel compliance, development and validation of rating models, managing and resourcing systems implementations.
Client
Retail banking division of large banking group
Location
UK
Client need
The bank was in the process of preparing the documentation for its Basel II waiver submission to the FSA. The documentation was prepared by each business unit and consolidated by a group function. The documentation pack amounted to several hundred documents and the group function needed to ensure the completeness, relevance and consistency of the documentation.
Our deliverables
We reviewed the documentation based on our Basel diagnostic tools. The review was designed to identify gaps in the documentation, inconsistencies and any areas of non-compliance with Basel rules. The deliverable was a detailed report which identified the areas where remedial action needed to be taken. The scope included all aspects of the Basel process including models for ratings, LGD, EAD, CCF, data and systems, management information and governance.