Bank associations hit out at Basel II failings

International banking bodies have hit out at perceived failings in the final version of the Basel II capital Accord, published by the Basel Committee on Banking Supervision on June 26.

Both the Institute of International Finance (IIF) and the International Swaps and Derivatives Association are concerned about the excessive amount of national discretion regarding regulatory capital.

“The ultimate effectiveness of the new Accord depends on how it is implemented in each country,” said the IIF in a statement. “The IIF, which has repeatedly stressed the importance of consistency of implementation across the major markets, noted that much remains to be done for Basel II to

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