Why Basel II will not apply to EU banks: the European Commission's new wider directive on regulatory capital is what will really matter. (Comment).(New Basel Capital Accord )

The Banker | December 1, 2002 | Copyright

Just when bankers in the European Union thought Basel II was almost over, the European Commission has stepped in with its own proposals.

Most of the contentious issues surrounding the New Basel Capital Accord have recently been resolved.

A few more tweaks, and everything seems set for the rules to be finalised next year, and implemented in 2006.

The aim of the Basel Committee on Banking Supervision at the Bank for International Settlements is to improve on the 1988 Accord by encouraging banks to align their capital more closely with risk.

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