Summary of respondents Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004) US Canada & Australia Japan Asia Emerging Markets EuropeMediumLarge

Banks Targeting IRB-Advanced Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004)

Banks Targeting Advanced Measurement Approach (AMA) Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004)

Expected Change in Capital Position Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004) Worsen considerablyWorsen a littleSome improvementSignificant improvement Percentage of respondents Asia & Emerging markets Canada & Australia US Europe (Medium) Europe (Large)

Uncertainty over budget- percentage of respondents answering Dont know by region Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004) Percentage of respondents Europe Asia & Emerging Markets Canada & Australia US

Costs of Basel II programme up to and including 2007 by Bank size Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004) 101m -200m26m – 50m25m or less51m – 100m> 200m % of respondents

Perceived major benefits: percentage of respondents identifying major benefit by type Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004) Reduced Credit Losses Reduced Operational Losses Regulatory Capital Reduction Enhanced Process Efficiency Enhanced Risk Based Pricing Enhanced Market Perception Improved Capital Allocation

Pillar 2, 3 implications of an Economic capital and Risk framework considered poor or average Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004) AveragePoor Percentage of respondents

Basel II impact on Credit and Operational Risk Management Processes Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004) Operational RiskCredit Risk Percentage of respondents

Expected changes to business mix Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004) Reduce Expand Expansion/ reduction Retail (Unsecured) Retail Mortgages SMEsCorporateSpecialised Lending/ Structured Finance Emerging markets Slight withdrawal of capacity should decrease competition leaving the specialists Likely increase in competition Competition likely to remain stable. Shake- out and increased consolidation

Current Status of Basel II Programmes Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004) Pre- implementation phase Implementation phase

Senior Management Sponsorship Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004) Function heads Senior executives 43% 20% 29% 8% 13% 80% 30% 40% 29% 42% 33% 9% 10% 29% 25% 20% 4% 7% 17% 8% 13% 30% 7% 8% 21% 0% 20% 40% 60% 80% 100% US (large)Europe (large) Canada & Australia Europe (medium) US (medium)Asia % of respondents Board memberExecutive committee memberRisk functionFinance functionNot disclosed

FTE Resources in Basel II Programme Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004) Europe (large)Europe (medium)USCanada & Australia Asia & emerging markets Number of full-time employees Non ITIT

Proportion of banks by region that have already completed strategic impact assessments Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004) % of respondents

Degree of confidence in rating model performance, validation and application Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004) Meeting use testRating model performanceModel Validation capability % of respondents

Operational Risk System Planning Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004) New external solution from single vendor New external solution from various vendors New internally developed solutions No major change Modifications to existing New systems planned New systems not planned

Credit Data Storage Options Source: FT Research study commissioned by Accenture, Mercer Oliver Wyman and SAP (2004) Mainly LocalMainly CentralMixture of Local and CentralNot known at this timeOther % of respondents