A different view on Basel II

Spain's banks are wary of jumping headlong into every aspect of the new capital Accord. But its fears appear justified, considering the country's risk profile. By Duncan Wood

National discretion will play a big part in how Basel II is implemented by banking regulators – so much so that international banks have long voiced their fears that the new regime will create an uneven playing-field. But wouldn't it be more damaging to pretend that all the world's banking markets are exactly the same? Spanish banks have good reason to fear such a scenario – or so they believe. "I suspect that Spain is different from most other countries. I think our risk profile is