Bis 2 Information

Our mission is to help BIS II professionals create a set of best practices for the industry.

BIS II is a relatively new development within the financial sector. It has had a large impact on most financial institutions who had to implement it. It meant new IT systems, new departments, new modelling techniques, new policies, etc.

Many companies began an expedition to find the best way to implement the new guidelines. Each financial institute started developing their own moddeling methods, policies, organisation, etc.

This initial stage of exploration is now over. Most financial institutions have now implemented some form of BIS II framework. However, in the aftermath of this initial stage few standards have emerged. Many different systems exist.

As with every new development, after initiation comes consolidation. It is in the direct interest of the financial industry to create industry standards. there are several benefits:

• Discussing the best methods for risk assesment and implementation will increase their quality.
• The minimal capital requirements compared to the risk will be equal for every financial institution. There will be no unfair competition due to the BIS II framework.
• Reporting on capital requirements will become comparable between different financial institutions.
• Central banks will have to validate a smaller diversity of BIS II frameworks.