Fed finally gives Basel II the green light

The Federal Reserve Board on Friday approved the American version of the Basel II framework on risk-based capital requirements. It is the last of the Group of Ten countries, which developed the framework, to do so.

Basel II was repeatedly delayed because of criticism from the banking industry in the United States. Banks had argued that the introduction of the rule would make them less competitive than their EU-based peers. The industry called for a set of rules similar to the European model -