Resources for Basel II Capital Accord (Basel II)

Banks bide time on Basel II launch

www.boston.com

Major U.S. banks aren't rushing to take advantage of the greater flexibility in risk management allowed by the so-called Basel II accord, a bank regulator said Monday. Large U.S. banks that operate internationally -- such as Citigroup Inc., Bank of America Corp., JPMorgan Chase & Co., and Wachovia Corp. -- are required to switch to the new Basel II standards, but have up to 36 months to do so.

Banks can begin making the switch on April 1. But Comptroller of the Currency John Dugan said at an international banking conference than no U.S. bank has set its own launch date.

Under Basel II, a set of rules approved last year by U.S. financial regulators, large banks will have more flexibility in managing risk and calculating capital reserves.

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