ÿþ<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html><!-- InstanceBegin template="/Templates/banking.dwt" codeOutsideHTMLIsLocked="false" --> <head> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> <!-- InstanceBeginEditable name="doctitle" --> <title>BMA - Banking, Basel II</title> <!-- InstanceEndEditable --> <style type="text/css" media="screen"> <!-- @import url("../css-js/topNav.css"); @import url("../css-js/level2.css"); --> </style> <!--[if IE 5]> <style> #footer {margin-top: 0;} body {text-align: center;} #masthead, #layoutwrapper, #footertext {text-align: left;} #c1{width:360px;} </style> <![endif]--> <!--[if lte IE 6]> <style> </style> <![endif]--> <!-- InstanceBeginEditable name="head" --><!-- InstanceEndEditable --> <link rel="stylesheet" href="../p7tm/p7tmBMA.css" type="text/css"> <script type="text/javascript" src="../p7tm/p7tmscripts.js"></script> <style type="text/css" media="print"> <!-- @import url("../css-js/level2-print.css"); --> </style> </head> <body id="bankingID" onload="P7_TMclass();P7_TMopen()"> <div id="masthead"> <div class="logoWrapper"><img src="../images/bma-logo.gif" alt="BMA Logo" width="170" height="95" /></div> <div id="searchWrapper"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td><img src="../images/search_01.gif" alt="Search Box Top" width="268" height="22" border="0" /></td> </tr> <tr> <td class="searchContent"><form action="../search.asp" method="post" name="form1" class="searchForm" id="form1"> <label><strong>Search</strong>&nbsp;&nbsp; <input name="Search" type="radio" id="Search0" value="General" checked="checked" /> General</label> &nbsp;&nbsp; <label> <input type="radio" name="Search" value="Entities" id="Search1" /> Licensed Entities</label> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td><input name="searchBox" type="text" class="searchTxt" id="searchBox" /></td> <td><input name="Go" type="image" class="searchbtn" id="Go" value="Go" src="../images/search-go.gif" /></td> </tr> </table> </form> <hr /> <p><a href="../contact-us/address-phone.html"><strong>Contact Us</strong></a></p></td> </tr> <tr> <td><img src="../images/search_03.gif" alt="Search Box Bottom" border="0" /></td> </tr> </table> <div class="searchContent"> </div> </div> <br class="clearit" /> </div> <!-- #BeginLibraryItem "/Library/Top Menus.lbi" --><div id="topNavWrapper"> <ul id="topNav1"> <li class="homeID"><a href="../index.asp">Home</a></li> <li class="aboutID"><a href="../about-us/index.html">About Us</a></li> <li class="insuranceID"><a href="../insurance/supervision-regs.html">Insurance</a></li> <li class="bankingID"><a href="supervision-regs.html">Banking</a></li> <li class="trustID"><a href="../trust/supervision-regs.html">Trust</a></li> <li class="investmentID"><a href="../investment/index.html">Investment</a></li> <li class="companyID"><a href="../company-matters/index.html">Company Matters</a></li> <li class="launderingID"><a href="../anti-money-laundering/supervision-regs.html">Anti-Money Laundering/ATF</a></li> <li class="feespenaltiesID"><a href="../fees-and-penalties/fees-and-penalties.asp">Fees & Penalties</a></li> <!--[if lte IE 6]><style>#topNav1 li{height:1em;}#topNav1 ul li{float:left;clear:both;width:100%}</style><![endif]--> <!--[if IE 6]><style>#topNav1 ul li{clear:none;}</style><![endif]--> </ul><br class="clearit"> </div> <div id="topNavWrapper2"> <ul id="topNav2"> <li class="statisticsID"><a href="../statistics/index.html">Statistics</a></li> <li class="legislationID"><a href="../legislation/index.html">Legislation</a></li> <li class="newsEventsID"><a href="../news-events-media/press-releases.asp">News, Events &amp; Media</a></li> <li class="documentsID"><a href="../document-centre/consultation-papers/insurance.asp">Document Centre</a></li><li class="qaID"><a href="../market-qa/overview.html">Market Q&A</a></li> <li class="careersID"><a href="../careers/index.html">Careers at BMA</a></li> <li class="coinsID"><a href="../notes-coins/index.html">Notes &amp; Coins</a></li> <!--[if lte IE 6]><style>#topNav2 li{height:1em;}#topNav2 ul li{float:left;clear:both;width:100%}</style><![endif]--> <!--[if IE 6]><style>#topNav2 ul li{clear:none;}</style><![endif]--> </ul> <br class="clearit" /> </div><!-- #EndLibraryItem --><div class="watermark1" id="layoutwrapper"> <div id="c1"> <div class="breadcrumb"><!-- InstanceBeginEditable name="Breadcrumb" --> <p>You are Here:&nbsp;&nbsp;<a href="../index.asp">Home</a>&nbsp;&nbsp;>&nbsp;&nbsp;Banking:&nbsp;<span class="breadcrumbBold">Basel II</span></p> <!-- InstanceEndEditable --></div> <!-- InstanceBeginEditable name="MainContent" --> <div class="c1Content"> <h1>Basel II</h1> <p>The Authority has completed a major overhaul of the banking policy framework to comply with the Basel II Accord, which introduces an enhanced supervisory framework and capital standard for banks. Basel II has been widely accepted around the world as the next evolution in global standards for banking supervision and implementing this new policy ensures that Bermuda s regulation remains consistent with international best practice and expectations. </p> <p> Following extensive consultation with industry, the Authority published its  Revised Framework for Regulatory Capital Assessment setting out in a single policy document the final rules for implementation in Bermuda of Pillars 1 and 2 of Basel II. Pillar 1 provides new rules for calculating the base capital requirement for institutions, while Pillar 2 sets out the process under which the Authority reviews how institutions assess the amount of capital they should hold, given the full range of risks they are exposed to, and the quality of controls they have established to mitigate those risks. </p> <p> The Authority also published a consultation paper setting out the approach it proposed to adopt for the implementation of Pillar 3 of the Accord, which deals with disclosure and market discipline. After a period of consultation with industry participants, the final rules for the implementation of Pillar 3 were incorporated into the  Revised Framework for Regulatory Capital Assessment Handbook on 31st December 2008. </p> <p> The Authority has also published in final form the revised reporting framework for capital adequacy reporting of credit, market and operational risks together with related Guidance Notes. </p> <p> Following the successful completion of this extensive policy revision project in 2008, the Authority met its key objective of implementing Basel II from 1st January 2009. </p> <p> Copies of the  Revised Framework for Regulatory Capital Assessment and related Guidance Notes can be found in <a href="../document-centre/policy-guidance/banking.asp">Document Centre</a>. </p> </div> <!-- InstanceEndEditable --></div> <div id="c2"> <div class="sideMenu"> <h1>Banking</h1> <div id="p7TMnav"> <div><a href="supervision-regs.html">Supervision & Regulation</a></div> <div><a href="basel-II.html">Basel II</a></div> <div><a href="licensing.html">Licensing</a></div> <div><a href="licensed-entities.asp">Licensed Entities</a></div> <div><a href="policy-guidance.html">Policy & Guidance</a></div> <div><a href="reporting-forms-guidelines.html">Reporting Forms & Guidelines</a></div> <div><a href="legislation.html">Legislation</a></div> <div><a href="consultation-papers.html">Consultation Papers</a></div> <div><a href="contact-banking.html">Contact Banking</a></div> </div> <div class="sideMenuBottom"><img src="../images/sideMenu_bottom.gif" alt="Menu Base" width="155" height="4"></div> </div> <br class="clearit"> <!--E-FILING LINK<div class="efiling"><a href="#"><img src="../images/l2_eFiling.gif" alt="eFiling" width="155" height="30"></a></div>--> </div> <br class="clearit"> </div> <div id="footer"> <div id="footertext">&copy; Copyright 2008. 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