Following on from my recent blog post “The Wonders of Regulatory Change” I thought I would had a follow up on the on-going Basel 2 Accord
Basel 2 is “shorthand” for the “New Basel Capital Accord”. The second in a series of frameworks that are intended to strengthen the soundness and stability of the international banking system.
The original Basel Accord was agreed in 1988 by the Basel Committee on Banking Supervision. This is now referred to as Basel 1.
Basel 2 is a revision of the Basel 1 framework. It aims to make the framework more risk sensitive and representative of modern banks’ risk management practices.
This new Basel Accord is implemented in the Europe Union via the Capital Requirements Directive (CRD).
PPMpractitioner 