The Bank of International Settlements released what appears to be the final draft of
One source pointed out that the Supervisory Formula Approach for internal ratings based (IRB) has been rolled back to the more complicated format. Responding to industry feedback, in January, the BIS considered simplifying the treatment of securitization-related exposures by simplifying the SFA (
The committee expects banks to implement the new framework as of year-end 2006. Banks taking the "advanced approach" will be afforded another year (implementation year-end 2007).
Market feedback on the final release will follow throughout the week, and in ASR 7/6/04.