Basel II: new challenges for implementation

Almost five years of negotiations within the Basel Committee seem to have finally produced a fairly advanced version of a broader and more substantive regulatory framework that aims at underpinning banking solvency for internationally active banks for a gradual implementation from end-2006. Rym Ayadi from the Centre for European Policy Studies discusses the view from Brussels.

Rym Ayadi, Centre for European Policy Studies

The Committee explicitly stated that the standardised and the internal ratings-based approaches for credit risk and the basic and standardised approaches for operational risk remain scheduled for the end of 2006.