BCBS 4 A

From Open Risk Manual

Definition

BCBS 4 A is a document published by the Basel Committee on Banking Supervision on July 1988 in the Bank Capital category.

Title

International convergence of capital measurement and capital standards.

Abstract

This document is the original text of the so-called Basle Capital Accord, which sets down the agreement among the G-10 central banks to apply common minimum capital standards to their banking industries, to be achieved by end-year 1992. The standards are almost entirely addressed to credit risk, the main risk incurred by banks.

The document consists of two main sections, which cover (a) the definition of capital and (b) the structure of risk weights. Two shorter sections define the target standard ratio and the transitional and implementing arrangements. There are four technical annexes covering the definition of capital, the counterparty risk weights, the credit conversion factors for off-balance-sheet items and the transitional arrangements.

In recent years, five amendments to the Accord have been agreed, for four of which specific changes to the language of the original Accord have been published. The fifth amendment, which introduces parallel capital requirements for market risk, does not include language to amend the 1988 text. This amendment issued in January 1996 is published as "Amendment to the capital accord to incorporate market risks ".

Document Profile

  • Publication Date: July 1988
  • Publication Type: Standards
  • Publication Status: Superseded
  • Publication Category: Bank Capital
  • Number of Pages: 30
  • Keywords: Credit Risk

See Also

Disclaimers

For definitive information on regulatory matters always consult primary sources, especially where it concerns legally binding rules and regulations.

The above regulatory document abstract is quoted verbatim in this Open Risk Manual entry and provided free of charge for the convenience of all internet users. There is no explicit or implicit endorsement of this web service by the Bank of International Settlements. The copyright of the included material rests with the original authors (Links to the original texts are duly provided).