Basel II

Recent Moody's Analytics Insight

 Insight Icons Article Provisions for Loan Losses are Declining... but That Might be Changing
In this article, adapted from the original Moody’s Analytics whitepaper, "Loss Reserves are Falling, But They Could Soon Be on the Rise”, Community Banks are offered an analysis of how they can use the Financial Accounting Standards Board’s (FASB) proposed updates to accounting standards in regard to allowance for credit losses (ACL) from December of 2012 to their competitive advantage. The systems and processes that can help banks comply with the new standards can also be leveraged to improve how they do business.

Authors: Christian Henkel, Jan Larsen 
Date: April 12, 2013
 Insight Icons White paper Loss Reserves are Falling, But They Could Soon Be on the Rise 
In December 2012, the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board (“IASB”) released their proposed update to the accounting standards for the Allowance for Credit Losses (“ACL”). The standards are intended to address weaknesses in the prior guidance that were revealed by the financial crisis. Specifically, the guidance seeks to facilitate more timely recognition of likely losses, and also seeks to simplify the prior guidance by establishing a single standard for impairment. In this whitepaper, we argue that the banks who best adapt to the new standards will be at a competitive advantage, and not only because of the edge inherent in setting more accurate provisions. The same systems and processes that can help you comply with the new standards can be leveraged to improve a wide array of core business activities.

Authors: Christian Henkel, Jan Larsen
Date: February 6, 2013
 Insight Icons White paper Deriving Greater Enterprise-wide Risk Insight from Stronger Data Quality Management
The 2007-2008 financial crisis has resulted in a greater focus on risk management from both a quantitative and qualitative perspective. This paper addresses the main issues associated with data quality in banking, demonstrating that data silos continue to be the main cause of data quality issues. The regulatory wave triggered by the financial crisis has not ignored the data-quality issue and this paper outlines the key regulatory concerns, mainly around Basel II and III. Finally, this paper outlines best practices banks can leverage to improve data accuracy, quality, and access across the organization.

Authors: Massimiliano Neri
Date: October, 2012

Insight Icons Powerpoint slide Basel III Regulatory Update - An overview of recent regulatory developments
Pierre-Etienne Chabanel's Presentation from the Moody’s Analytics Regulatory Capital User Group provides an overview of recent regulatory developments covering the current Basel III status and timeline for Europe and the rest of the world, latest EU CRD IV regulation and directive proposals, and EU Unified COREP, FINREP and Large Exposure regulatory reports.

Author: Pierre-Etienne Chabanel
Date: June 13, 2012

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