Basel II Accord
E435701
The Basel II Accord is an international banking regulation framework that refines capital adequacy, risk management, and supervisory standards to strengthen the stability of the global financial system.
All labels observed (1)
| Label | Occurrences |
|---|---|
| Basel II Accord canonical | 1 |
Statements (52)
| Predicate | Object |
|---|---|
| instanceOf |
Basel Accord
ⓘ
financial regulation standard ⓘ international banking regulation framework ⓘ |
| adoption | implemented through national legislation and regulation ⓘ |
| appliesTo | internationally active banks ⓘ |
| coordinatedBy | Bank for International Settlements NERFINISHED ⓘ |
| criticizedFor |
complexity of implementation
ⓘ
procyclicality of capital requirements ⓘ reliance on banks internal models ⓘ |
| definesComponent |
Tier 1 capital
NERFINISHED
ⓘ
Tier 2 capital ⓘ risk-weighted assets ⓘ |
| definesRatio | minimum total capital ratio of 8 percent of risk-weighted assets ⓘ |
| finalTextIssued | June 2004 ⓘ |
| focusesOn |
capital adequacy
ⓘ
market discipline ⓘ risk management ⓘ supervisory review ⓘ |
| fullName | International Convergence of Capital Measurement and Capital Standards: A Revised Framework NERFINISHED ⓘ |
| geographicScope | global ⓘ |
| implementedIn |
European Union
NERFINISHED
ⓘ
Japan NERFINISHED ⓘ United States (partially and with modifications) NERFINISHED ⓘ |
| influenced | design of Basel III reforms ⓘ |
| influencedBy | Basel Committee on Banking Supervision consultations with industry NERFINISHED ⓘ |
| introducesConcept |
advanced measurement approaches for operational risk
ⓘ
basic indicator approach for operational risk ⓘ internal ratings-based approach for credit risk ⓘ standardized approach for credit risk ⓘ standardized approach for operational risk ⓘ three pillars framework ⓘ |
| issuedBy | Basel Committee on Banking Supervision NERFINISHED ⓘ |
| language | English ⓘ |
| motivatedBy |
growth of financial innovation and complex products
ⓘ
need for more risk-sensitive capital framework ⓘ |
| pillar |
Pillar 1: Minimum Capital Requirements
ⓘ
Pillar 2: Supervisory Review Process NERFINISHED ⓘ Pillar 3: Market Discipline ⓘ |
| predecessor | Basel I Accord NERFINISHED ⓘ |
| primaryObjective |
enhance risk sensitivity of bank capital requirements
ⓘ
harmonize international banking supervision standards ⓘ improve risk management practices in banks ⓘ strengthen stability of the global financial system ⓘ |
| publicationYear | 2004 ⓘ |
| regulates |
credit risk capital requirements
ⓘ
market risk capital requirements ⓘ minimum regulatory capital for banks ⓘ operational risk capital requirements ⓘ |
| revisionOf | 1988 Basel Capital Accord NERFINISHED ⓘ |
| sector | banking regulation ⓘ |
| shortName | Basel II NERFINISHED ⓘ |
| successor | Basel III Accord NERFINISHED ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.