Banks face IT checks


Banks face IT checks

Nick Huber
City watchdog the Financial Services Authority will inspect banking IT systems and staff as part of a beefed-up international banking code on risk management, companies were warned this week.

Banks that go for the more sophisticated levels of compliance with the New Basel Capital Accord, commonly known as Basel 2, will need to prove that their IT systems are robust enough to meet its stringent requirements. Basel 2 is due to be implemented in 2006.

Analysts estimate that global banks will have to spend between £20m and £100m to comply with the requirements of Basel 2.

IT challenges include linking a maze of banking databases and reporting systems, updating older applications and ensuring data is accurate. IT staff will also have to work closely with colleagues in risk management and finance, in a project that has the potential to make or break careers.

Barclays builds Basel-busting banking >>

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