Resources for Basel II Capital Accord (Basel II)

Key banking supervisors move to gird international system against new shocks

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A key group of banking supervisors on Wednesday announced new measures to strengthen the world's banking system against shocks like the U.S. subprime mortgage crisis.

The regulatory panel based at the Bank for International Settlements said the steps will lead to better protection against risky loans with steps such as requiring more appropriate capital reserves.

"The committee is introducing a number of measures to help ensure sufficient capital, to capture off-balance sheet exposures more effectively and to improve regulatory capital incentives," said a statement by the Basel Committee on Banking Supervision, made up of banking regulators from major countries.

The steps come on top of provisions known as Basel II issued by the committee that are being implemented by banking systems around the world to specify how much capital banks need to hold in reserve for different kinds of risks.

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