US regulator approves Basel II for smaller banks

The Federal Deposit Insurance Corporation (FDIC), one of the US's regulatory agencies, on Wednesday approved a version of the Basel II framework designed for the country's smaller banks.

The proposal would enable all but the largest and most complex banks to adopt an alternative risk-based framework based largely on the internationally-applied Basel II rules.

"The standardised approach proposal is expected to add greater risk sensitivity without creating excessive complexity and burden and, th