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basel committee and the resilience of the banking system April 16, 2008

Posted by Bradley in : Uncategorized , trackback

The Basle Committee announced that it was working on a number of steps including:

* Enhancing various aspects of the Basel II Framework, including the capital treatment of complex structured credit products, liquidity facilities to support asset-backed commercial paper (ABCP) conduits, and credit exposures held in the trading book. At the same time, the Committee notes the importance of prompt implementation of the Basel II framework, as this will help address a number of the shortcomings identified by the financial market crisis.
* Strengthening global sound practice standards for liquidity risk management and supervision, which the Committee will issue for public consultation in the coming months.
* Initiating efforts to strengthen banks’ risk management practices and supervision related to stress testing, off-balance sheet management, and valuation practices, among others.
* Enhancing market discipline through better disclosure and valuation practices.

And the UK government plans a scheme to support mortgage loans made before the end of December 2007.

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