FRSGlobal

Basel II

Embracing advanced Basel II approaches and capital management practices

While some countries in Asia-Pacific and Japan were initially content with implementing basic and standardised approaches to Basel II, the trend towards more complex approaches to credit risk and market risk management has evolved as the Basel Committee on Banking Supervision continued to enhance its guidance for more sophisticated approaches to managing market, credit, and operational risk.

As the global influence of banks has shifted away from North America and Europe, leading banks in Japan and developed markets in Southeast Asia are well into their preparation for adopting the Internal Model Approach (IMA) to market risk, the Advanced Measurement Approach (AMA) to operational risk, and the Internal Ratings Based Approach (IRB) for credit risk.

Japan one of the early adopters implemented Basel II guidance in 2007. It currently adopts the IRB approach for credit risk and Advanced Measurement Approach (AMA) for operational risk. In addition, Japan follows a very rigorous policy towards risk assessment

The FRSGlobal solution provides a sophisticated Basel II module with the ability to calculate the capital charge for market and credit risk as required under Pillar 1. For Pillar 2, interest rate risk in the banking book, liquidity risk and concentration risk are covered. DataFoundation enables the reporting requirements set out in Pillar 3. The Basel II compliance can be used as an independent stand alone solution or in combination with all the other FRSGlobal RiskPro and RegPro modules.

Capital Adequacy Reporting Videos

A series of videos explaining various aspects of Capital Adequacy Reporting.

• What is Capital Adequacy Reporting?



• What is the purpose of Basel?



• RiskPro or RegPro?



• What does the FRSGlobal solution cover?



• What are the analysis methods?



• What are the Japanese demands?



• FRSGlobal solution for JFSA