risk functions, which convert loss estimates into regulatory capital requirements. The Committee also required that banks conduct stress tests that consider the downward migration of their credit portfolios in a recession.
In addition, the Committee has put in place a comprehensive data collection initiative to assess the impact of the Basel II framework on its member countries over the credit
▪ RISKASSESSMENT
The economy was hard hit on account of its dependence on the financial markets
The economy suffered badly from the crisis on account of its specialization in financial services focused purely on international business (40% of GDP.
Trends for all components of the economy were negative in 2009, with the exception of public demand, which benefited from massive financial s
A country of High CR
▪ A country of High CR: China
▪ RISKASSESSMENT
Good resilience in 2009 thanks to the economic stimulus programme with a rebound expected in 2010
The economy began to slow in 2008 due mainly to domestic imbalances (overcapacity in several sectors) and policies that remained restrictive too long. And these domestic factors were compounded by the cont