Regulatory Alerts2004-01-01
First Consultative Paper on the Implementation of the New Basel Capital Accord
The Bank Supervision Department of the South African Reserve Bank issued this consultative paper to outline its strategy for implementing the Basel II capital adequacy framework by December 2006. The document mandates that banks migrate from the 1988 Accord to Basel II approaches, requiring a parallel run period from January 2006 for institutions adopting advanced Internal Ratings Based or Advanced Measurement Approaches. It further details the scope of application, national discretions for credit risk, and the conditional approval process for sophisticated risk management models while inviting industry feedback on these regulatory changes.
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