Most problematic of the Basel II capital adequacy requirements is the subset of Pillar I, requiring provision for operational risk (OR) as distinct from credit and market risk. Previous tests of the strategic effect of this new regulation from three prior Quality Impact Studies (QIS) conducted...

Most problematic of the Basel II capital adequacy requirements is the subset of Pillar I, requiring provision for operational risk (OR) as distinct from credit and market risk. Previous tests of the strategic effect of this new regulation from three prior Quality Impact Studies (QIS) conducted...

The three pillars of Basel II introduce new capital ratios, new supervisory procedures, and demand better disclosure to ensure effective market discipline in both the equity and debt markets. Included in these requirements, for the first time, is the necessity for financial institutions to...