Peach have released a new BCMP (Basel 2 Compliance Mapping & Proof) certification scheme for financial institutions and software vendors, in order to help them with their Basel 2 compliance.
Basel 2 is an international accord that requires banks and financial services firms to have a more rigorous risk sensitive framework for the assessment of regulatory capital, and sets international capital adequacy standards to ensure that lenders can meet their obligations.
In 1988, the Basel Committee on Banking Supervision established a method of relating capital assets, using a simple system of risk weights and a minimum capital ratio of 8%, and this has been retained. It has a great impact on business practices, computer applications, scenario modeling, workflow and procedures.
Basel 2 has been introduced in early 2007 but many banks and financial institutions still struggle to comply and it will be many months before this compliance mandate is fully imbedded.