Description of the Operational Mechanics of a Basel Regulated Banking System

TL;DR

This paper details the operational mechanics of Basel-regulated banking systems to facilitate accurate computer simulations and invites feedback on its descriptions and regional variations.

Contribution

It provides a comprehensive, verifiable description of banking operations under Basel regulations, aiding simulation and analysis efforts.

Findings

Detailed operational description of Basel-regulated banking systems

Framework for computer simulation of banking operations

Encourages feedback on regional variations

Abstract

This paper presents a description of the mechanical operations of banking as used in modern banking systems regulated under the Basel Accords, in order to provide support for a verifiable and complete description of the banking system suitable for computer simulation. Feedback is requested on the contents of this document, both with respect to the operations described here, and any known national, regional or local variations in their structure and practice.