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Basel Regulatory Frameworks

Basel regulatory requirements for modeling and analysis of credit risk and market risk

The Basel regulatory frameworks, developed by the global Basel Committee on Banking Supervision, are international banking standards designed to enhance financial stability, improve risk management, and maintain capital and liquidity adequacy in the banking sector. They provide a unified approach to banking regulation across countries, fostering global financial stability and uniform risk management.

Object-based frameworks support Basel-compliant, International Swaps and Derivatives Association ( ISDA®) workflows for calculating the capital banks must hold to cover the risk that a derivative's trading partner will fail to pay its obligation.