IIF responds to “A New Capital Adequacy Framework”

On April 12 the Institute of International Finance (IIF) published its response to the Basel Committee’s June 1999 consultative paper, “A New Capital Adequacy Framework”. The IIF’s response takes the form of two reports, from its Working Group on Capital Adequacy and from a special Steering Committee on Regulatory Capital established specifically to provide ‘constructive private sector input’ to the Basel process. HSBC Chairman Sir John Bond, who chairs the IIF, said the proposals contained in the two reports were aimed at enhancing competitiveness by bringing individual banks’ capital requirements more into line with actual risks.