IBM Debuts Basel II Compliance Application

IBM began selling a package of software, hardware and consulting services designed to help banks comply with the forthcoming Basel II Capital Accord, the company said today.

The Basel II Accords, recommendations from the Basel, Switzerland-based Bank for International Settlements, are guidelines that standardize measurement of credit risks, market risks and operational risks. The accords take effect in 2007 and impact banks that do business within the European Union.

The IBM package, called Risk and Compliance - Basel II Information Management, lets banks connect scattered data repositories and make information available automatically. It automatically generates reports that flag discrepancies between a bank's general ledger and actual transactions, for example.

IBM is promoting its Banking Data Warehouse, DB2 Universal Database and the financial services segment of its Business Consulting Services unit as part of the new offering.

Basel II requires banks to be able to record, access and analyze several years' worth of customer and operational data. Banks might be required, for instance, to evaluate the default rates of old loans in a particular industry or geographical area.

IBM's new package carries an entry level price of about $350,000.