Basel Committee publishes weak banks guidelines: The Basel Committee has published its final guidelines for identifying and dealing with weak banks. The guidelines update the 2002 edition, and the changes from the earlier edition include:

  • emphasising the need for early intervention and the use of recovery and resolution tools, and updating supervisory communication policies for distressed banks;
  • providing further guidance for improving supervisory processes;
  • highlighting the issues of liquidity shortfalls, excessive risk concentrations, misaligned compensation and inadequate risk management; and
  • expanding guidelines for information-sharing and cooperation.

The report covers both the underlying supervisory preconditions for dealing with weak banks and techniques that will allow the supervisor to identify problems, and corrective measures for turning round or resolving banks. (Source: Basel Committee Publishes Weak Bank Guidelines)

Basel Committee consults on revised account opening guide: The Basel Committee is consulting on a revised version of the general guide to account opening, which was first published in February 2003. It plans to annex the new version to its "Sound management of risks related to money laundering and financing of terrorism" guidelines. The proposed guide is not intended to strengthen, weaken or otherwise modify the existing FATF standards but rather should support banks in implementing the FATF standards and guidance. Consultation closes on 22 October. (Source: Revised Guide to Account Opening for Consultation Issued by the Basel Committee)

Basel Committee issues market and CVA risk documents: The Basel Committee has issued instructions and the workbook for firms participating in its Quantitative Impact Study (QIS) on the Fundamental review of the trading book (FRTB) and the Review of the Credit Valuation Adjustment risk framework (CVA). Firms must report all data as of 30 June, unless the national supervisor provides alternative guidance. Banks will have until 14 September to fill in the requested templates and submit them to their national supervisory agency. In case of data quality issues, some questions/requests for clarification will be sent to the banks concerned. These banks will be asked to resubmit data to their National Supervisory Authority by 7 October. (Source: Basel 2 Monitoring)