The implementation of Basie II: issues, challenges and implications for Nigeria.

Abstract

The significant development of Basle II throughout the world has meant that financial institutions and insurance companies must manage and measure risk in new ways. This paper is intended to provide the participants at the Executive Seminar with a firm foundation of the state of Basle II Accord principles and provide the tools and techniques to grapple with its implementation. This paper is divided into eight parts. Following this introduction, Part 2 discusses the necessity for a capital accord, the emergence of Basle I and the Basle II Accord. Part 3 discusses in brief the concept of Risk Management and the integrated risk management structure. Part 4 discusses the intention of the new accord, its pillars and the entire structure. Basle II implementation and the necessary condition for implementing the Accord and the scope of implementation are discussed in part 5 and 6, respectively, while part 7 dwells on the obstacles to a successful implementation and other challenges. Part 8 concludes the paper.