Unlike the existing BSP risk-based capital adequacy framework, the new Basel II-based framework will not only focus on the computation of the appropriate level of capital given a certain level of exposure, but will also highlight the need for more market disclosures by banks on their risk management exposures and practices.
*** World markets for oil and natural gas have been subject to a degree of strain over the past year not experienced for a generation. Increased demand and lagging additions to productive capacity have combined to eliminate a significant amount of the slack in energy markets that was essential in containing energy prices between 1985 and 2000.