IIF and GFMA requests extension of the QIS and consultation period for the credit risk Standardized Approach (SA)

Ahead of their meeting in Frankfurt on February 24, the' IIF and GFMA sent a letter to the Basel Committee's Task Force on Standardized Approaches (TFSA) requesting ' an extension of the deadline of the QIS and for the comments on the consultative document in order to improve the quality of these exercises. The letter also recommends multiple-phased and logically-ordered data collection exercises conducted for different exposure categories.'

While the IIF and GFMA stressed their members' readiness and commitment to assisting the TFSA in completing its work, they also noted the current QIS's inherent difficulties that may result in data quality issues hampering the appropriate calibration of the credit risk SA. ' Moreover, the two associations noted the importance of extending the comment period since' design issues and interpretation questions are likely to come to light as part of the QIS estimation process and so critical issues can be missed if the industry must comment on the proposals prior to being able to fully participate in the QIS.'