Wednesday, June 30, 2004

Final version of Basel II now available

Central bank governors and the heads of bank supervisory authorities in the Group of Ten (G10) countries met on the 26th June and endorsed the publication of the ‘International Convergence of Capital Measurement and Capital Standards: a Revised Framework’, the new capital adequacy framework commonly known as Basel II. The Basel II Framework sets out the details for adopting more risk-sensitive minimum capital requirements for banking organisations. The new framework reinforces these risk-sensitive requirements by laying out principles for banks to assess the adequacy of their capital and for supervisors to review such assessments to ensure banks have adequate capital to support their risks. It also seeks to strengthen market discipline by enhancing transparency in banks’ financial reporting. The text that has been released reflects the results of extensive consultations with supervisors and bankers worldwide. It will serve as the basis for national rule-making and approval processes to continue and for banking organisations to complete their preparations for the new Framework’s implementation.
Here's a link to the full final Basel II document