EU Directive implementing the new Basel 2 Accord
Description
The 1988 Basel Capital Accord set minimum levels of capital for large internationally active banks. The Accord is being updated to reflect more risk-sensitive techniques and is due to be implemented on 31 December 2006. In order to implement the new Accord, and extend the scope of the new regime to all credit institutions and investment firms, within the EU a new directive (the so-called CAD3 or RBCD) will be required to overwrite the existing rules. The European Commission expects this directive to be implemented on a timetable compatible with the new Accord.
Internal links
- UK discussion paper on the Commission´s review of the financial regulatory framework for commodity and exotic derivatives December 2007
- HM Treasury's Consultation Document on CAD3