Furthermore, in view of the importance attached to publicly available data, there is a need for this information to be harmonised and provided in a standardised format that is easy to access. As in any other policy field, the higher the quality of the input data, the more reliable are the results of analytical work, and thus the policy decisions. In addition, there is the definition of data confidentiality. Taking an extreme view, all information that has not been published could be labelled “confidential”, while the other extreme would be to make everything public. It would be fair to say that the “definition” used in Europe appears to be stricter than that in other jurisdictions. For example, some regulators such as the US Federal Financial Institutions Examinations Council publish selected supervisory information on banking institutions operating in the US market, including on subsidiaries of European banking groups, regularly (on a quarterly basis). Parts of these data are “confidential” in Europe, but this is not so on the other side of the Atlantic. As mentioned earlier, a change in attitude by EU financial regulators would greatly benefit the quality of the risk-monitoring and risk-evaluation work undertaken by macro-prudential bodies. In addition, it would provide a concrete signal of increased transparency to market analysts and financial market participants. In turn, it would help significantly to minimise the reporting burden of the industry. Let me try to illustrate my point with some examples.   The breakdowns of banks’ credit exposures by type of collateral or counterparty sector (e.g.

However, for large banking institutions with businesses which are highly complex, the more advanced approaches, that is, the foundation or advanced internal rating based (IRB) approach may be more appropriate to reflect their actual risk profile. Similarly, there are three alternative approaches that may be adopted in allocating capital for operational risks, that is the basic indicator approach, the standardised approach and the advanced measurement approach. The objective of the new framework is to emphasise on the need for refined measurement of risks, more efficient capital management and the adoption of sound risk management practices that will ultimately contribute to greater financial stability. This will be complemented with efforts to enhance the corporate governance framework, the robustness of the internal control systems, and to introduce greater transparency and market discipline. Within the context of these developments is the importance of the ability of the board members and top management of banking institutions to assess risk from a broader perspective and its strategic impact on the institution. In view of the significant implications of this new capital framework, Bank Negara Malaysia has been directly involved in the consultative process through regional forums to ensure that issues and concerns of the emerging markets are considered by the BIS in designing the new accord. We are pleased to note that many of these issues have been taken into consideration. Motivation for migration to the new accord The adoption of the new accord is consistent with building strong risk management capability.