QIS 5 details confirmed
BASEL, Switzerland - Global banking regulators confirmed in late March their plans to undertake between October and December this year a fifth quantitative impact study -QIS 5 - into the effects of the complex Basel II upgrade of international capital rules for bank safety.
This calibration study will start three months earlier than previously envisaged, the Basel Committee on Banking Supervision, the architect of Basel II, said. The Committee, which comprises senior banking supervisors from North America,
Europe and Japan, held its regular quarterly meeting at the end of March.
The Basel regulators will review the calibration of Basel II in the spring of 2006. The Committee believes this earlier date for potential recalibration will provide banks with more time to study the expected effects of the Basel II rules and aid implementation plans.
The Committee said it's ready to take action if QIS 5 were to show that the regulators' aim with the level of bank capital under Basel II, namely that there's no overall change, would not be achieved.
In countries in which a QIS 4 is being conducted, QIS 5 might be either a partial update of QIS 4 or a new exercise. Banks will be provided with draft workbooks for QIS 5 in July 2005, the Committee said.
