Resources for Basel II Capital Accord (Basel II)

GCC cautious on Basel II move

www.gulfnews.com

Since Basel I was introduced it has broadly been adapted in over 100 countries; however, over time, it has became clear that, with increasingly sophisticated products and markets, the risk to which a bank was exposed cannot be accurately assessed with the black-and-white rules of Basel I, so the 1999 Basel Committee introduced Basel II in response to this.

The fallout of the credit crunch calls into question whether Basil II needs further adjustment. Banks adopting Basel II fully could have real competitive advantages over those that don't as their cost of funds is less, allowing them potentially significant pricing advantages for their products over banks that don't.

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