The Committee Racecourse at Basel, Switzerland, is again the setting for an important race on October 4 and 5. At stake is the prize of calibrating the output floor for banks using the internal ratings based approach to set capital requirements. The committee originally floated the range of 60%-90% of capital requirements calculated using the standardised approach (which is also undergoing a major rejig). What will be the outcome? Where will the floor be set? Nobody knows, but a peek at the FIG Idea bookmakers might shed some light on the possibilities
