SIA Submits Comments to the Federal Reserve System on the Basel Capital Accord

Published on:
August 5, 2003

The Securities Industry Association (SIA)* provides comments to the Board of Governors of theFederal Reserve System on the Basel Capital Accord. SIA believes there are a few key modifications and clarifications that can address the concerns we identify and foster a risk-based capital regime appropriate for commercial banks and investment banks alike. SIA suggests an internal models-based approach to calculatingrisk capital is more effective at estimating risk for many credit sensitive assets than the weightings-based approach for banking book assets under Basel II.

*SIFMA is the product of a merger between the Securities Industry Association (SIA) and The Bond Market Association (TBMA) in 2006.

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