Basel – The New Capital Accord

Dr G A Walker. International Banking and Finance Law Unit, Centre for Commercial Law Studies, London

This is the second part of an examination of the content and importance of the Basel Committee’s recent final consultation on the revision of modern capital adequacy requirements. Within this article, Dr. George Walker examines the changes made to the market risk component within the minimum requirement are outlined. The nature and operation of the new supervisory review and market discipline rules are considered. The importance and value of the new framework are also examined and its contribution to the development of more stable and effective banking markets more generally assessed.