The proposed rules are presented and key issues regarding implementation of the accord identified. The model used to calibrate the capital requirements under Basel 2 is analyzed and projected forward to present what could be key new elements in the future Basel 3 regulation. A CD-ROM is included to illustrate regulator models.
LAURENT BALTHAZAR is a Bank Credit Analyst at Dexia Bank. He has been responsible for development of a credit risk portfolio model for computing total economic capital and its allocation to business lines. Previously, he has worked on development of RAROC Models for the banking group and was in charge of following Basel 2 new regulation and defining its impact on the bank. He is a frequent speaker at conferences on Basel 2.