Compromises allow Basel II to progress

The Basel Committee on Banking Supervision said last month that there were no substantial issues remaining with the complex Basel II capital Accord, after a series of compromises involving the capital treatment of loans to small and medium-sized enterprises (SMEs), the treatment of credit card portfolios and a widely criticised floor on operational risk capital charges. “There’s still some technical work to be done, but all the key issues are dealt with,” says one regulator with the Committee