UNDERSTANDING THE EXPECTED LOSS DEBATE

The final draft of the new global Accord on bank regulatory capital - Basel II - has been delayed. A critical and unresolved issue is whether banks should include expected losses in their measure of credit risk. The author reports on efforts to untie the knot.

Subjects

• Bank capital
• Law and legislation.
• Basel II

Details

• From
  Risk, Nov. 2003, pp.29-32