| More than 100 countries are already implementing to | | | | Advanced Measurement Approaches (AMA). |
| some extend the Basel II framework. It is interesting | | | | More than 75% of the countries will implement Pillars |
| that only 13 countries have the obligation to do it | | | | 2 and 3 by 2015. These Pillars appear to be much |
| (the 13 Basel Committee of Banking Supervision | | | | more challenging than it was originally anticipated. |
| member countries). | | | | It is interesting to mention that the International |
| 17 out of 22 countries in Asia, 12 out of 28 countries | | | | Monetary Fund (IMF) is supporting the Basel II |
| in Africa, 12 out of 17 countries in Latin America, 9 | | | | framework, but believes that partial, or selective |
| out of 10 countries in the Middle East and 8 out of 11 | | | | implementation will be athreat to international stability. |
| countries in the Caribbean are implementing Basel II. | | | | Countries are able to cherry-pick parts or the |
| Credit Risk, Standardised Approach: This is by far the | | | | framework and to adopt options and national |
| most widely used credit risk methodology, adopted | | | | discretions that may lead to a false sense of security. |
| by almost 90% of the countries. The Foundation | | | | For the International Monetary Fund (IMF), it is |
| Internal Ratings Based Approach and the Advanced | | | | important to assess the effectiveness of the various |
| Internal Ratings Based Approach will be used by | | | | Basel II implementations arount the world. |
| 60-65% of the countries. | | | | According to the IMF, the Basel Committee is |
| Operational Risk, Basic Indicator Approach: This is the | | | | reviewing the framework after the current marker |
| most widely used operational risk methodology, , | | | | crisis to strengthen the treatment of complex |
| adopted by almost 85% of the countries. The | | | | products (like securitization exposures and |
| Standardised Approach is not far behind, as almost | | | | off-balance-sheet products that return to the balance |
| 75% of the countries will accept it. Half of the | | | | sheet of the financial organizations) and stress testing |
| countries have the intention to use the the | | | | methodologies. |