Adopting a standardised approach is much less demanding than the internal ratings-based approach

Seven issues that will keep banks busy on the Basel front

Basel II may sound like the name of a movie sequel. In banking circles, however, the phrase evokes a big shift that is fast approaching.

For starters, ‘Basel II Framework’ refers to a document titled ‘International Convergence of Capital Measurement and Capital Standards: A Revised Framework,’ released by the Basel Committee on Banking Supervision (BCBS) on June 26, 2004, and supplemented in November 2005 by an update of the ‘Market Risk Amendment.’

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The Indian economy may be capable of self-sustaining growth but only in the longer term

Current credit crunch is more than bursting of ‘bubble’

If you find the web of international economies and money incomprehensible, take heart. You are not alone. That is how it is: “beyond comprehension,” says Satyajit Das. He is the author of Traders, Guns & Money, a book that talks about the known and the unknown in ‘the dazzling world of derivatives.’

It is ‘part thriller, part expose,’ describes Das, talking to Business Line, over the phone from Mumbai. “The whole point was to make it a fun read and teach something about the business and how these markets work in a non-technical way. It’s also satiric, irreverent and black in its humour — is that too many adjectives?”

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Accounting of costs is less important than upstream management of costs

A four-step cost-competitiveness roadmap for Indian manufacturers

Local demographics and the economy may be acting against Japanese automobile sales, pushing the latest tally to a 35-year low, yet their business abroad is brisk. And, the leading industry players in the Land of the Rising Sun continue to bring out innovative and environment-friendly models at continually lower costs.

One may wonder if Japanese automakers, well known to have already achieved high cost efficiencies, still see a role for cost management. Can any incremental gain from cost management be too insignificant to pursue?

“Cost efficiency is very necessary for Japanese automakers, because global competitors are getting more competitive,” argues Mr Hiroshi Okano, professor in Graduate School of Business, Osaka City University, Japan.

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Every country has its unique culture, especially business culture

Convergence of accounting standards entails significant costs

A survey of accounting industry leaders from around the world has found overwhelming support for convergence of accounting standards, as a recent story in http://www.webcpa.com/ informs.

“According to a survey of 143 leaders from 91 countries, conducted by the International Federation of Accountants, 89 per cent indicated that convergence to International Financial Reporting Standards (IFRS) was ‘very important’ or ‘important’ for economic growth in their countries. Nine per cent said it was ‘somewhat important,’ while only 1 per cent said it was not important,” states the December 4-dated article.

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