ECB defends Basel II against US Treasury plans

LONDON – European Central Bank (ECB) officials have sprung to the defence of Basel II after the US Treasury called for “a new international capital accord”.

ECB council members Christian Noyer and Nout Wellink said planned enhancements to Basel II – by the Basel Committee and at European Union level – were improving the Accord, but more work was still needed.

The US Treasury paper, released on September 3, calls for a replacement to Basel II to be agreed by December 31, 2010, and implemented in