Understanding the new Basel Capital Accord

The Basel Committee on banking supervision, which meets at the Bank for International Settlements, decided today to delay implementation of its new capital accord (which sets international standards for the amount of regulatory capital which banks must hold to back loans and other risks). The delay was caused in part by the 230+ detailed comments with which the committee has been bombarded since they launched a detailed draft of the accord in January 2001. It also reflects the sheer complexity

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