The New Basel Capital Accord - an International Convergence of Capital Measurements and Capital Standards in Banking

Imola Driga

Annals of the University of Petrosani, Economics, 2007, vol. 7, 129-132

Abstract: The International Convergence of Capital Measurements and Capital Standards was finally published on June 26, 2004 by the Basel Committee on Banking Supervision. This framework is known in the market as Basel II and it replaces the current framework (Basel I) for banks as to how they calculate their capital requirements. The Basel II describes a more comprehensive measure and minimum standard for capital adequacy that national supervisory authorities are implementing through domestic rule-making and adoption procedures. It seeks to improve on the existing rules by aligning regulatory capital requirements more closely to the underlying risks that banks face. In addition, the Basel II is intended to promote a more forward-looking approach to capital supervision.

Keywords: the Bank for International Settlements; the Basel Committee on Banking Supervision; capital requirements; capital adequacy (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (2)

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