$1 bn spending by US banks on IT for Basel II

The movement to Basel II is expected to increase the spending on risk management IT by 30% over the next two years, to exceed $1 bn in 2009 for major US banks. According to Boston-based consultancy, Aite Group the spending on IT for Basel II initiatives will increase from around $805m in 2007 to over $1 bn in 2009.

The major budget of Basel II is expected to go in integration.

As of now only larger banks are moving towards Basel II and with implementation of this norm in developing countries like India is going to be effective from next year, Banks are getting ready in a big way to get into new emerging markets.