39th Annual Meeting

Session 1: The Challenges and Implications of Basel II for Asia

3 May 2006 (10:00 a.m. - 12:00 p.m.)

The new framework for banking supervision, Basel II, is due to be implemented from 2008. In view of its complexity, developing Asia will have to follow a sequenced approach to its adoption given the stage of development of the banking industry, the legal and regulatory environment, accounting practices, rating agencies, and the level of understanding of risk measurement and management of the banking industry. The capacity of the regulators to effectively implement new methodologies and supervise the banks also has to be taken into account. In addition, there are concerns about the effect that the adoption of Basel II by more developed markets may have on resource flows to developing markets, as stringent capital requirements against internal risk models of the banks may mean that international banks become more reluctant to take exposure in emerging markets.

The seminar will examine the challenges and implications for Asia and specifically address: (i) implications of Basel II for emerging and developing economies, (ii) perspectives on the choices national regulators will offer to the Asian banks, and (iii) the approaches chosen by individual Asian countries and how countries will address the technicalities of the credit risk, market risk and operational risks.

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Contact Us

For further information, contact Ms. Asa Malmstrom-Rognes, tel: (63-2) 632-6226, email:amalmstrom@adb.org