Extensibility of COREP and Compatibility between Basel II agreement and the future Directive An external analysis. Francisco Flores Muñoz University of.

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Presentation transcript:

Extensibility of COREP and Compatibility between Basel II agreement and the future Directive An external analysis. Francisco Flores Muñoz University of Huelva.

Questions Is possible to link COREP with Basel II agreement text? How the compatibility is? Is possible to more completely extend COREP to Pillar II and III? Is possible to extend COREP to other geographic spaces?

Is possible to link COREP with Basel II agreement text? How the compatibility is? Hypothesis: We think that COREP could be easely extended to Pillar II and III (adding more templates to the current set), and to other geographic spaces (linking legal references in templates to Basel II agreement text). We think that a strong relationship exists between Basel II agreement and the future European Directive, which supports the link between COREP, Basel II Pillars and other geografic frameworks.

Extensibility. Legal aspects. Basel II agreement Future Directive COREP The legal structure permits the link between COREP and Basel text.

To other Basel Pillars COREP Templates Today Pillar I Pillar II Pillar III Future Templates

To other geografic frameworks European Union European Directive COREP Templates Basel II Agreement New Templates Other countries

Objetives Make a direct comparison between legal references of a COREP template and the Basel II agreement text. Propose a set of new templates to be added to COREP´s one, including Pillars II and III key aspects.

Comparison between legal references We have selected two template, OPR LOSS and OTH 3 AFF and we have tried to relate each element with a reference in Basel II agreement. The result and conclusions are the following:

OPR LOSS Template

OTH 3 AFF Template (I)

OTH 3 AFF Template (II)

Preliminar Conclusions We could link the templates with Basel II text. We could link the templates with Basel II text. We should make any conciliations. We should make any conciliations. We could add more templates (adding more measures and dimensions and using the existing set) to complete the disclosing requirements of Pillars II and III We could add more templates (adding more measures and dimensions and using the existing set) to complete the disclosing requirements of Pillars II and III