Regulatory Alerts2004-01-06
Basel II: International Convergence of Capital Measurement and Capital Standards - a Revised Framework
The Registrar of Banks issued Banks Act Circular 12/2004 to notify banks of the Basel Committee on Banking Supervision's release of the revised Basel II framework. This new standard establishes higher benchmarks by prescribing risk-sensitive capital requirements for credit and operational risk while enhancing market discipline through improved disclosure and supervisory processes. Banks are now expected to finalize their implementation planning, with the regulator intending to communicate regarding their respective states of readiness in due course.
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