Resources for Basel II Capital Accord (Basel II)

Netherland's Wellink: Turmoil May Require Basel II Fine Tune

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The current turmoil on financial markets may require a fine tuning of the Basel II framework, Nout Wellink, president of the Netherlands Bank and member of the European Central Bank's governing council, said Friday.

"The Basel II framework in that sense is inherently flexible with its risks-based approach," said Wellink, who is also Basel Committee on Banking Supervision Chairman. He added that "even so, as lessons from the turmoil become clear, it may be necessary to fine tune certain elements of the Basel II."

Speaking as part of a panel discussion at a symposium hosted by the Bank of France, Wellink also said that "global financial markets have become deeper and more diversified and financial products have become more complex," with the opening of borders for banks and other market participants.

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