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Dealing with Basel II: the impact of the New Basel Capital Accord

Thomas Garside (Thomas Garside is Head of Finance and Risk Practice)
Jens Bech (Jens Bech is a Consultant, both with Mercer Oliver Wyman)

Balance Sheet

ISSN: 0965-7967

Article publication date: 1 December 2003


International regulators are due to finalize the New Basel Capital Accord by the end of 2003, for implementation by banks at the end of 2006. Basel II is a response to the need for reform of the regulatory system governing the global banking industry. In this article, we review the New Basel Capital Accord and summarize some of the main implications that we expect it to have on the European banking industry. As was the case for the first Basel Accord (Basel I), we conclude that not only will the new accord have an impact on the amount of book capital that banks are required to hold, but also on the strategic landscape of the banking industry.



Garside, T. and Bech, J. (2003), "Dealing with Basel II: the impact of the New Basel Capital Accord", Balance Sheet, Vol. 11 No. 4, pp. 26-31.




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