Many of the world's largest banks see "significant challenges" in restructuring IT systems to comply with the impending Basel II Capital Accord regulatory changes, according to research.
Substantial numbers of banks remain uncertain over budgets and risk management frameworks, and admit to insufficient progress in the implementation of IT process changes required to meet the regulations.
Basel II updates and expands 1988 capital rules for risk management practices, with the final guidelines due to be confirmed in late June.
The research, sponsored by Accenture, Mercer Oliver Wyman and SAP, warned that Basel II will require banks to make significant changes to their business practices.
"The survey confirms that a quick database and reporting fix was never going to work," said Paul Cartwright, a managing director at Accenture, in a statement.
"Many banks now clearly see the need for combined IT, organisational and process change. Although budgeting was hurt by the past two years of worldwide cost containment, banks are facing significant compliance challenges."
Thomas Balgheim, senior vice president for financial services at SAP, added: "Most banks will tell you that data management remains the greatest single Basel II challenge because you have to utilise detailed information from across the enterprise.
"Increased centralisation is a way to improve the likelihood of successful project delivery and cost reduction."
The study pointed to widespread uncertainty on the total cost of compliance, with nearly a third of respondents unsure of the cost.
Most banks with assets under $100bn expect price tags of €50m or less, while nearly two thirds of larger banks project costs of more than €50m.
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