The Basle II capital accord: op risk proposals in brief


Large international banks will be required for the first time from 2005 to set aside capital as a guard against operational risk. The charge will be stipulated under Basle II, the new capital adequacy accord proposed by the Basle Committee on Banking Supervision, which chiefly comprises banking supervisors from the Group of 10 leading economies.

The European Commission intends imposing from the same date a similar charge, closely modelled on Basle II, under its third capital adequacy di