BBA, ISDA, LIBA, ESF and IBF have responded to the Basel Committee’s CP150 on proposed enhancements to the Basel II framework. They welcome the targeted approach to the problems that the Committee plans. It highlights as areas needing particular review:
- risk weights in respect of re-securitisation;
- approach to liquidity facilities; and
- enhancing due diligence requirements.
Its responses comment in detail on the proposals for Pillar 1 and Pillar 2 enhancements.