Second, Risk Based Supervision (RBS) in 23 banks has been introduced on a pilot basis. Third, we have been encouraging banks to formalize their capital adequacy assessment process (CAAP) in alignment with their business plans and performance budgeting systems. This, together with the adoption of RBS, would enable factoring in of the Pillar II requirements under Basel II.
He has developed a measure of systemic risk capturing the systemic impact of an individual institution’s shortfall and which is published in the so-called NYU Stern Systemic Risk Ranking. The keynote speech will be followed by two outstanding papers on measuring systemic risk.