Basel II Capital Accord, Basel I Initiatives, and Other Basel-Related Matters
Basel II is an effort by international banking supervisors to
update the original international bank capital accord (Basel I),
which has been in effect since 1988. The Basel Committee on Banking
Supervision , on which the United States serves as a participating member,
developed Basel II. The revised accord aims to improve the consistency
of capital regulations internationally, make regulatory capital more risk
sensitive, and promote enhanced risk-management practices among large,
internationally active banking organizations. Revisions to
Basel I-based rules also are under consideration.