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Byline: Darana Chudasri
Jul. 7--Siam City Bank has installed a new risk-management system in preparation for the introduction of new capital guidelines expected to be introduced in Thailand as early as 2006.
The Bank for International Settlements is working on a new capital adequacy framework, called Basel II, to more accurately tune the amount of capital to be held by financial institutions as a buffer for potential risks.
The existing accord requires banks to set aside capital and provisions based on the credit risk of counterparties. The new system, however, will also require reserves for market and operating risks.
Niwes ...