Basel Framework International regulatory standards for banks
Basel Committee on Banking Supervision
Basel Accords
Basel I
Basel II
Basel III
LCR
NSFR
FRTB
Basel 3.1
Background
Banking / Regulation
Monetary policy / Central bank
Risk / Risk management
Pillar 1: Regulatory capital
Capital requirement
Capital ratio
Leverage ratio
Tier 1
Tier 2
Credit risk
SA-CR
IRB
F-IRB
A-IRB
EAD
SA-CCR
IMM
CCF
Market risk
Standardized
IMA
CVA vol
BA-CVA
SA-CVA
Operational risk
Basic
Standardized
AMA
Pillar 2: Supervisory review
Economic capital
Liquidity risk
Legal risk
Pillar 3: Market disclosure
Disclosure
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Basel II is the second of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision. It is now extended and partially superseded by Basel III.
The Basel II Accord was published in June 2004. It was a new framework for international banking standards, superseding the Basel I framework, to determine the minimum capital that banks should hold to guard against the financial and operational risks. The regulations aimed to ensure that the more significant the risk a bank is exposed to, the greater the amount of capital the bank needs to hold to safeguard its solvency and overall economic stability. Basel II attempted to accomplish this by establishing risk and capital management requirements to ensure that a bank has adequate capital for the risk the bank exposes itself to through its lending, investment and trading activities. One focus was to maintain sufficient consistency of regulations so to limit competitive inequality amongst internationally active banks.
Basel II was implemented in 2008 in most major economies.[1][2][3] The financial crisis of 2007–2008 intervened before Basel II could become fully effective. As Basel III was negotiated, the crisis was top of mind and accordingly more stringent standards were contemplated and quickly adopted in some key countries including in Europe and the US.
^Yetis, Ahmet (January 2008). "Regulators in Accord" (PDF). Risk Magazine. London. Archived from the original (PDF) on April 2, 2015. Retrieved March 30, 2015.
^"OCC Approves Basel II Capital Rule". occ.gov. November 2007. This final rule is effective April 1, 2008.
^"Basel II – questions and answers". cml.org.uk. Archived from the original on 2011-12-14.
BaselII is the second of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision...
testing, and liquidity requirements. Augmenting and superseding parts of the BaselII standards, it was developed in response to the deficiencies in financial...
Basel I accords. Basel III was a set of enhancements to in response to the financial crisis of 2007–2008. It does not supersede either Basel I or II but...
Basel (/ˈbɑːzəl/ BAH-zəl, German: [ˈbaːzl̩] ), also known as Basle (/bɑːl/ BAHL), is a city in northwestern Switzerland on the river Rhine. Basel is Switzerland's...
operational risk, adopted by the European Solvency II Directive for insurers, is a variation adopted from the BaselII regulations for banks: "The risk of a change...
Basel I is the first Basel Accord. It arose from deliberations by central bankers from major countries during the late 1970s and 1980s. In 1988, the Basel...
calculation of economic capital, expected loss or regulatory capital under BaselII for a banking institution. This is an attribute of any exposure on bank's...
Basel IA was proposed as an intermediate between the then current Basel I accord and the BaselII accord, which was being implemented at the time. Basel...
to as Basel I. In June 2004 this framework was replaced by a significantly more complex capital adequacy framework commonly known as BaselII. Following...
under BaselII for a banking institution. It can be defined as the gross exposure under a facility upon default of an obligor. Outside of BaselII, the...
to strengthen the financial system, noting that the previous proposals (BaselII) did not prevent the financial crisis of 2007–2008. It was first published...
establishing the Basel Capital Accords (now commonly referred to as Basel I) of 1988, BaselII framework in 2004 and more recently Basel III framework in...
in a variety of credit analyses and risk management frameworks. Under BaselII, it is a key parameter used in the calculation of economic capital or regulatory...
it refers to a set of credit risk measurement techniques proposed under BaselII capital adequacy rules for banking institutions. Under this approach the...
amount and is an integral part in the European banking regulation since the BaselII accords. In an off-balance-sheet product, the bank is obligated to provide...
The University of Basel (Latin: Universitas Basiliensis, German: Universität Basel) is a public research university in Basel, Switzerland. Founded on 4...
The Basel Committee on Banking Supervision (BCBS) is a committee of banking supervisory authorities that was established by the central bank governors...
Basel Minster (German: Basler Münster) is a religious building in the Swiss city of Basel, originally a Catholic cathedral and today a Reformed Protestant...
a supervisory framework in the European Union which reflects the BaselII and Basel III rules on capital measurement and capital standards. Member States...
Often called "Basel for insurers," Solvency II is somewhat similar to the banking regulations of BaselII. For example, the proposed Solvency II framework...
capital were first defined in the Basel I capital accord and remained substantially the same in the replacement BaselII accord. Tier 2 capital represents...
taking excessive risk. Today market discipline is introduced into the BaselII Capital Accord as a pillar of prudential banking regulation. The efficacy...
it refers to a set of credit risk measurement techniques proposed under BaselII capital adequacy rules for banking institutions. Under this approach the...
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