The Basel Accords are a series of international regulatory standards for bank capital adequacy, stress testing and liquidity, issued by the Basel Committee on Banking Supervision, hosted at the Bank for International Settlements in Basel, Switzerland. Basel I (1988) introduced minimum capital ratios; Basel II (2004) refined risk-weighting and added supervisory review and market-discipline pillars; Basel III, developed from 2010 to 2011 in response to the 2008 global financial crisis and extended by a further reform package finalized in December 2017, raised capital quality and quantity requirements and added new liquidity and leverage standards. The Accords are not directly binding as law: they are standards member jurisdictions' own regulators and legislatures are expected to adopt domestically, which the European Union has done chiefly through its Capital Requirements Regulation and Directive package and the United States through its federal banking agencies' own regulations.
Facts
EraInternational, Basel I 1988, Basel II 2004, Basel III 2010 to 2011 with reforms finalized 2017 2 Promulgated ByThe Basel Committee on Banking Supervision, hosted at the Bank for International Settlements 2 Jurisdiction ScopeInternational; applied domestically by member jurisdictions' own banking regulators and legislatures rather than taking direct effect as law itself 2 Regulatory DomainBank capital adequacy and prudential financial regulation 2 Jurisdiction Scope
Jurisdiction Scope (category) Jurisdiction Scope (category)International / Supranational 2 Classification
Legal Status Era
Era (category)20th Century (1900-1999) 2 Connections
Associated With
AAOIFI Shariah Standards are the Islamic-finance counterpart regularly compared with the Basel Accords for capital adequacy and prudential standards in comparative financial-regulation literature.
The Basel Committee on Banking Supervision drafts and maintains the Basel Accords.
Dodd-Frank Wall Street Reform and Consumer Protection Act required US federal banking regulators to implement Basel III capital and liquidity standards domestically.
The Basel Accords are a body of international soft law: non-binding standards issued by the Basel Committee on Banking Supervision that member jurisdictions implement through domestic legislation.
Solvency II is widely described as the insurance-sector analogue to the Basel Accords bank capital framework
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Sources
1. Basel Accords (Wikipedia)
Lead sectionQuote, Lead section
The Basel Committee on Banking Supervision (BCBS, often shortened as Basel Committee) is a body that brings together bank supervisory authorities to set common prudential standards and policy.
2. Bank for International Settlements, Basel Committee on Banking Supervision
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