The requirement to set aside capital to meet operational risk under the terms of the Basel II Accord is changing the economics of the custody industry, say Ashwin Roongta and Sanjay Taneja, two Senior Consultants working in the Banking and Capital Markets Division of Infosys Technologies Limited, Bangalore, India. A fee-based business hitherto built around boosting scale has now to be managed like other capital-hungry banking businesses, they say.
In the attached paper, Roongta and Taneja explain various proposed measurement approaches proposed in the Basel II capital accord, analyse their likely impact on the custody industry, and suggest measures that can be taken to address the problem.
Ashwin Roongta (ashwin_roongta@infosys.com) is a Senior Consultant within the Banking and Capital Markets Division at Infosys. He has over 7 years of experience in the Finance and Business Domain and has developed skills in areas of banking, cash management and payment systems and custody and settlement. Prior to joining Infosys, he was with Hongkong and Shanghai Banking Corporation in India where he worked in various areas of the bank, including operations, sales and relationship management. Roongta is a Certified Cash Manager from the Association of Finance Professionals, USA and holds and MBA degree in Finance.
Sanjay Taneja (sanjay_taneja@infosys.com)is also a Senior Consultant within the Banking and Capital Markets Division at Infosys. At Infosys, he focuses on transaction banking. He has over 12 years of experience in the areas of custodial services, asset management and cash management with Deutsche Bank, Morgan Stanley and Standard Chartered Bank. Prior to joining Infosys, he was Assistant Vice President at Deutsche Bank Global Securities Services at Mumbai, India. He is a certified “Global Custody” expert by the Securities Institute in London and is also a “Certified Treasury Professional” from the Association of Finance Professionals in the US. He has recently led a large project at a global custodian in the US.