Update to QIS 3 Workbooks and Additional Instructions

Following the release of the QIS 3 on 1 October 2002, a small number of changes have been made to the electronic workbook. The alterations are mainly to correct some links between the worksheets and, in a few cases, to correct formulae. Because it is important that accurate questionnaires be completed, a revised version of the electronic workbooks (for both the comprehensive and standardised only package) has been provided for banks. Banks must use the revised version of the workbooks to calculate capital requirements under the proposed New Basel Capital Accord.

The structure of the workbook is unchanged, with the exception of the addition of three rows (461-463) in the Current Accord spreadsheet to incorporate 'off-balance sheet specialised lending exposures' - the appropriate links to the data sheet have also been added. The approach taken to calculate capital is the same and the row/column placements for banks' inputs (i.e. the yellow cells) are unchanged in the worksheets. Therefore, banks, which have started to fill out the questionnaire, will simply be able to copy information into the new workbook (although care must be taken to copy only yellow cell inputs - cells with formulae must not be overwritten).

The other parts of the QIS 3 package are unchanged - including the instructions distributed to banks. However, additional instructions are being provided that address two separate issues: (1) the granularity criterion in the standardised approach of the retail portfolio, and, (2) the impact of guarantees by adjusting LGD-estimates in the advanced IRB approach.

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