Book extract > Introduction to the Basel II Handbook: A Guide for Financial Practitioners

In June 1999, the Basel Committee on Banking Supervision made its long-anticipated announcement to introduce a new capital adequacyframework to replace the 1988 Accord. 1

Citing a critical needto redesign the antiquated 1988 Accord in light of market innovationsand a fundamental shift toward more complexity in the bankingindustry during the past decade, the Committee declared that:^2,3

“The world financial system has witnessed considerable economicturbulence over the last two years and, while these conditions havegenerally not been focused on G-10 countries directly, the risks thatinternationally active banks from G-10 countries have had to dealwith have become