Banks risk not meeting Basel deadline
Many banks are failing to implement the Basel Accord, according to a global survey by KPMG.
Around half of the 294 financial institutions in 38 different countries surveyed are still only in the ‘assessment phase’ according to the poll.
Implementation of the accord, which sets the amount of capital that must be retained to meet financial risk, is due for 2007.
Banks continue to worry about the cost of implementing the system and what kind of information they will have to disclose once it is up and running.
Globally, some 10% of banks are establishing ‘Basel teams’ in readiness for 2007 – in the Asia Pacific region this climbed to 22%.