Resources for Basel II Capital Accord (Basel II)

Basel II advanced approaches unworkable, say former US regulators as lawmakers call for early consensus

www.globalriskregulator.com

Four former federal banking regulators have intervened in the US debate over the controversial Basel II bank safety rules by suggesting the so-called advanced approaches under the regime are unworkable.

In so doing the former supervisors appear to support the doubts about the advanced approaches to measuring risks expressed recently by Federal Deposit Insurance Corporation (FDIC) chairman Sheila Bair, who heads the agency that insures customer deposits at America’s banks. The FDIC is widely seen as championing the most conservative US interpretation of the international Basel II bank capital adequacy framework endorsed by the Group of Ten leading economies, including the US, in 2004. Many countries started implementing Basel II this year.

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