PRMIA today announced preliminary findings from a recent survey of its members regarding Basel II Implementation Risk.
The survey of over 1,100 bankers, consultants and regulators from over 85 countries who are active in Basel II implementation, was concluded July 13, 2007.
Over 90 percent of bankers feel that the application of Basel II norms for all players in the market promotes better risk management. Almost 80 percent of respondents believe that Basel II implementation will make the banking system sounder (more stable), while just 4 percent thought the system would be less sound (less stable).
Among those identifying themselves as coming from the largest banks in their countries, 42 percent said they expected their capital requirements to fall by more than 10 percent under Basel II, while just 12 percent expect required capital to increase by more than 10 percent.
A majority of the bankers who participated in the survey come from institutions that are among the largest in their countries, with nearly 50 percent saying they plan to implement the Advanced approaches to Basel II.