SIA Submits Comments to the Federal Reserve on the Draft Basel Capital Accord
The Risk Management Committee of the Security Industry Association (SIA)* provides comments to the Board of Governors of the Federal Reserve (Federal Reserve) on the proposal for the new Capital Accord released by the Basel Committee on Banking Supervision. SIA welcomes the decision of the Basel Committee to propose a global standard that encourages market discipline and appropriate capital allocation and, in particular, appreciates the Capital Accord’s increased emphasis on risk sensitive approaches to the measurement of capital adequacy. SIA highlights a significant issue the Capital Accord does not address, which is mark-to-market (or fair value) accounting.
*SIFMA is the product of a merger between the Securities Industry Association (SIA) and The Bond Market Association (TBMA) in 2006.