BASEL ACCORDS

Basel Accords
Banking supervision Accords (recommendations on banking laws and regulations) By the Basel Committee on Banking Supervision (BCBS) BCBS created by the central bank Governors of the Group of Ten nations. It was created in 1974 and meets regularly four times a year The Basel Committee consists of representatives from central banks and regulatory authorities of the Group of Ten countries-Group of Ten countries include Belgium, Canada, France, Germany ,Italy, Japan, Netherlands, Sweden, Switzerland, United Kingdom and United States) plus others (specifically Luxembourg and Spain).

Basel Accords
The Basel Committee named after the City of Basel, Switzerland. The Committee usually meets at the Bank for International Settlements (BIS) in Basel, Switzerland The Basel Committee formulates broad supervisory standards and guidelines and recommends statements of best practice in banking supervision in the expectation that member authorities and other nations' authorities will take steps to implement them through their own national systems, whether in statutory form or otherwise Chairman of the Committee is Nout Wellink, President of the Netherlands Bank

Basel Accords
Basel I Basel II Basel III (Under process)

Basel I
First of the Basel Accords issued in 1988 Mainly focused on credit Risk Minimum Capital Requirements for Banks Highlighted the concept of risk weighted assets.

Basel II
Second of the Basel Accords

Initially published in June 2004 Uses a "three pillars" concept

Minimum Capital Requirements for Banks

supervisory review Market Discipline.

Minimum Capital Requirements for Banks

Capital Adequacy Risk Based Approach

Supervisory Review
Ensuring that capital is enough to support all the risks in the business Encourage Banks to use advanced risk management techniques in monitoring and managing their risks

Market Discipline
Full disclosure Bank reputation Stake holders decision

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