Banking and financial services

Infission has a plan for expansion. These plans are more than can be financed out of profits, so the treasurer, being the guy who is responsible for the corporate finance, is off to talk to some old colleagues who now find themselves in the financial sector. While we are there, we will talk to them about the major compliance issues in the banking and finance sector.

Basel

The first compliance issue that they tell us about is the Basel accords. The purpose of Basel II, which was initially published in June 2004, is to create an international standard that banking regulators can use when creating regulations about how much capital banks need to put aside to guard against the types of financial and operational risks that the banks face. While not a law, in and of itself, the signatories of the G10 are requested to advise their banking supervisory organizations to implement its directives. Advocates of Basel II believe that such an international standard can help...