As they face impending Basel II deadlines in key jurisdictions and frenetic implementation of compliance initiatives, several banks are beginning to realise that their perceptions of the capital accord have been off the mark. Our research shows that there are several stages of a Basel II compliance programme. Banks can benefit enormously from understanding this continuum of stages in their journey to compliance. If they can identify which stage they are at, they can prepare themselves for the accompanying challenges and gauge how much work lies ahead.
Internationally active banks seeking Basel II compliance typically proceed through three distinct stages along the continuum. Although banks may have implemented varying types of vendor solutions or built technological frameworks during each stage, these do not appear to be a barrier to progress at subsequent stages.
