Broad agreement reached on Basel Committee capital and liquidity reform package

The Group of Governors and Heads of Supervision (Group), the oversight body of the Basel Committee on Banking Supervision, met on 26 July 2010 to review the Basel Committee's capital and liquidity reform package. The Group is deeply committed to increase the quality, quantity, and international consistency of capital, to strengthen liquidity standards, to discourage excessive leverage and risk taking, and reduce procyclicality. The Group reached broad agreement on the overall design of the capital and liquidity reform package. In particular, this includes the definition of capital, the treatment of counterparty credit risk, the leverage ratio, and the global liquidity standard. The Committee will finalize the regulatory buffers before the end of 2010. The Group also agreed to finalize the calibration and phase-in arrangements at their meeting in September.

Mr Jean-Claude Trichet, President of the European Central Bank and Chairman of the Group, said that "the agreements reached today are a landmark achievement to strengthen banking sector resilience in a manner that reflects the key lessons of the crisis." He emphasized that "the Group of Governors and Heads of Supervision have ensured that the reforms are rigorous and promote the long term stability of the banking system. We will put in place transition arrangements that ensure the banking sector is able to support the economic recovery."



Mr Nout Wellink, Chairman of the Basel Committee and President of the Netherlands Bank added that "a strong banking sector is a necessary condition for sustainable economic growth." He added that the announcements today should provide additional transparency about the design of the Basel Committee reforms, thus reducing market uncertainty and further supporting the economic recovery. Mr Wellink underscored that "many banks have already made substantial strides in strengthening their capital and liquidity base. The phase-in arrangements will enable the banking sector to meet the new standards through reasonable earnings retention and capital raising."

In reaching their broad agreement, the Group considered the comments received during the public consultation on the Basel Committee's proposed reforms, which were published in December 2009. They also took account of the results of the Quantitative Impact Study, the assessments of the economic impact over the transition and the long run economic benefits and costs. The Basel Committee will issue publicly its economic impact assessment in August. It will issue the details of the capital and liquidity reforms later this year, together with a summary of the results of the Quantitative Impact Study.

The key broad agreements of the Governors and Heads of Supervision are summarized in the “Annex” which may be downloaded from the BIS by clicking HERE.

UK's Metro Bank's first customers on why they are switching

TRAINING COURSE “ENTERPRISE RISK MANAGEMENT (ERM)”

Zurich, 15 -16 December 2010

Organizations are experiencing an increased concern and focus on risk management. The challenge for management of both private and public organizations today is to determine how much uncertainty to accept as it strives towards achieving the organization’s objectives and delivering value to its stakeholders.

The solution to this challenge is the establishment of an Enterprise Risk Management (ERM) system and processes that effectively identify, assess, and manage risk within acceptable levels.

Enterprise Risk Management (ERM) supports value creation by enabling management to:

• Deal effectively with potential future events that create uncertainty. 
• Respond in a manner that reduces the likelihood of downside outcomes and increases the upside potential and its realization.

This practical 2-day hands-on training course providing attendees with an understanding of the requirements needed to design and implement an appropriate Enterprise Risk Management system, i.e. policies, procedures, practices, and accountability required to establish the right levels of Risk Management in compliance with current standards and other requirements for their organizations.

The course provides an opportunity for delegates to benchmark their ERM practices against the COSO – ERM framework, and learn how to implement an effective ERM system.

This course is being offered in conjunction with IASeminars.

For detailed course information and registrations please CLICK HERE

TRAINING COURSE “CORPORATE GOVERNANCE”

Zurich, 13 -14 December 2010

In the last decade corporate governance has become established as an area of increasing academic, political and commercial debate. It has now become essential for any middle or senior manager to have an understanding of the key aspects of effective corporate governance.

Corporate governance is;

• a relationship among stakeholders that is used to determine and control the strategic direction and performance of organizations
• concerned with identifying ways to ensure that strategic decisions are made effectively
• used in corporations to establish order between the firm’s owners and its top-level managers.

This course provides an overview of the regulation, frameworks and principles behind corporate governance policy and practice. Its aim is to provide delegates with an understanding of core governance debates and issues, practical advice on compliance and a familiarity with accepted best practice.

This course will provide participants with a sound grounding in the key components of corporate governance, which will in turn enhance their ability to operate at more senior levels of organizations.


This course is being offered in conjunction with IASeminars.

For detailed course information and registrations please CLICK HERE

TRAINING COURSE “OPERATIONS RISK – ACTIVE MANAGEMENT ACROSS INDUSTRIES”

London, 29 November / 1 December 2010

In the past decade Operations Risk Management has been increasingly pushed into the foreground by the work and the requirements of international standard setting bodies. Through various recommendations as well as specific covenants, operational risk management has become merely a compliance issue facing most corporations.

Implementing an effective Operational Risk Management regimen is a complex process. At its core is an understanding of what Operations Risk is and how it can be best managed. All too often firms have seen the need to effectively manage their operational risks as simply an issue of complying with what the regulators require, rather than a disciplined process that serves to not only ensure a business’s survival but which can, in the long run, contribute to that business’s financial fortune.

In this three day intensive course, we survey the full ambit of Operations Risk Management & Mitigation – from assessment to implementation. During this course we set out a number of key actions which need to be taken by management in the short and medium term to be ready for implementation of a proper risk management program. It is intended to move the participants beyond the local and international compliance requirements for operations risk, and into an understanding of operations risk management and mitigation as a value added proposition, increasing the organization’s profitability and structural strength.

This course is being offered in conjunction with IASeminars.

For detailed course information and registrations please CLICK HERE

Hong Kong's Octopus under fire for selling customer data

Hong Kong transit payment card operator Octopus has admitted selling the personal data of nearly two million customers to its business partners. The Hong Kong press reports that the firm has been paid HK$44 million over the last four and a half years by six companies, including Cigna Worldwide Life Insurance, for data that was used for marketing.

Octopus chief executive Prudence Chan initially denied that data had been sold but she has since backtracked in the face of fierce criticism from Hong Kong's privacy commissioner Roderick Woo, who has launched an investigation.

Octopus has now issued a statement saying it will no longer hand over customer data to merchant partners for marketing purposes. Chan says the company believes its policies are based on Hong Kong's Personal Data Ordinance but acknowledges customers concerns.

"To put their minds at ease, we believe the best way forward is to terminate all activities that involve the provision of customers' personal data to merchant partners for marketing purposes," she says.

Octopus has proved hugely successful since its launch in 1997 but has faced controversy before. In 2007 it admitted wrongly deducting a total of HK$3.7 million from 15,270 customers over seven years because of a fault in its EFT system which resulted in funds being deducted from customers' bank accounts but not credited to their travel passes.

MoneyGram expands its network in Paraguay

MoneyGram International has added three new agents to its network in Paraguay. The new agent partners include Banco Familiar, Cambios Chaco and Multicambios.

Banco Familiar is a leading consumer bank in Paraguay, and has one of the largest banking branch networks in the country. Cambios Chaco, with 20 locations, and Multicambios with 30 branches - the most in the country - are experienced foreign exchange agencies. Banco Familiar and Cambios Chaco were formerly agents of MoneyGram's main competitor and now are offering MoneyGram services.

The new agents will introduce MoneyGram into the cities of Concepcion, Santa Rita and Pedro Juan Caballero. Other MoneyGram agents in Paraguay are Banco Vision, Brios de Finanzas and Maxicambios.