OPERA^® Basel II — Wealth Management Capital Allocation Case Study

Evaluating Capital Requirements for Non-Bank Activities
The wealth management group of a large, internationally active U.S. bank and bank holding company was engaged in an analysis of data, processes and procedures related to the bank's Basel II initiatives.

Basis Point Group (BPG) was retained to provide business program management to the bank's wealth management Basel II team. BPG was asked to create an analysis framework and implement an analysis that would allow the bank to quantify the impacts on the line of business arising from the new regulatory reporting requirements set forth in the business requirements documents by the bank's Basel II technology delivery team.

Basis Point Group (BPG) began the assignment by meeting with executive, senior and mid-level management to determine their understanding and perceptions of the impact the Basel II requirements would have on the wealth management group's operations and cost structure.

Based on these discussions, BPG worked with the Basel II team to develop an analysis structure to evaluate the group's business requirements. The team was composed of operating, risk and technical participants from the bank's holding company, banking subsidiaries and financial services operations, including investment banking, brokerage and prime brokerage, asset management and leasing subsidiaries.

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