QIS 2.5 Exercise

As a result of industry feedback obtained through the consultative process and the valuable information received through the Basel Committee's second quantitative impact study (QIS 2), the Basel Committee is considering several potential modifications to the proposed New Basel Capital Accord.

However, before finally deciding on which modifications should be made, the Committee needs statistical information on the effect that such revisions would have on different banks. In order to gather this information, the Committee has asked a number of banks to participate in an update to QIS 2. This current exercise - QIS 2.5 - will entail calculating the Foundation IRB capital requirements as set out in the Committee's January 2001 second consultative paper but after making various modifications which the Committee is considering.

The QIS 2.5 exercise is contained in an Excel workbook accompanied by detailed instructions for completing the exercise and participating banks are asked to complete the exercise by the end of November.