ZIJBEMR MARCH 2012 ISSUE COMPLETE.pdf - zenith ...

35www.zenithresearch.org.inZENITH International Journal of Business Economics & Management ResearchVol.2 Issue 3, March 2012, ISSN 2249 8826Online available at http://zenithresearch.org.in/From the above discussion, it became clear that emerging economies of Asia Pacific haveundertaken a relative cautious approach considering the state of sophistication of their bankingmarkets and to give more time to local banks to collect the extensive data required by revisedframework. Of emerging banking market countries of Asia Pacific, Philippines was first to movetowards new accord in 2007, which reflected BSP strong commitment to banking reforms tostrengthen the banking industry in Philippines. Moreover banks in India, Malaysia, Indonesia,Thailand and Pakistan began to gradually move towards capital adequacy ratios under Basel IIfrom year 2008 with simplified approaches and are now upgrading skills and risk managementinfrastructure to seep to more sophisticated approaches. However, China will take more time as itinitially rejected Basel II in the aftermath of QIS 3, although subsequently banks with overseasoperations were required to become Basel II compliant by beginning its implementation from thyear end-2010.3.2. ADVANCED COUNTRIES OF ASIA PACIFIC REGIONBasel II Regulatory Compliance among advanced economies of Asia Pacific is examined byexploring various publications, press releases and websites of Central banks of these countries.The compliance and implementation status of Basel II framework in the developed economieshas been shown in Table 2.TABLE 2: BASEL II REGULATORY COMPLIANCE AMONG ADVANCEDCOUNTRIES OF ASIA PACIFICCountryJapanHong KongBasel II Regulatory ComplianceBasel II was implemented covering all the deposit-taking financialinstitutions from the end of March 2007.In Hong Kong, all locally incorporated banks and financialinstitutions adopted Basel II on 1 st January 2007. While most haveadopted either standardized approach or simplified approach forcredit risk, others are developing IRB capabilities to gain regulatoryapproval.Taiwan Taiwan’s banks began phased implementation of Basel II in 2007using the standardized approaches when calculating minimum capitalrequirements.AustraliaBasel II was implemented by Australian Prudential RegulatoryAuthority (APRA) on 1 st January 2008, by making available allapproaches at the earliest date prescribed by Basel Committee forBanking Supervision.South Korea South Korea adopted Basel II capital framework in January 2008