The Basel Committee on Banking Supervision, the body that in effect regulates international banking, wants to bring Basel II into effect for the large, international banks of the leading economies by late 2006.
The accord will determine how much of their assets the banks will have to set aside as a cushion to absorb unexpected losses from banking risks, including credit, market and operational risks.
The European Commission wants to apply parallel capital adequacy rules closely modelled on Basel II to all banks and investment firms in the 15-nation European Union.
Castell said the home country would normally be the “lead” regulator for an international bank. Isda supports the view that a home country as lead regulator should have responsibility for the global regulation of a consolidated banking group.BaselAlert.com