Why Basel Training?
Basel Accord (1.0, 1.5, 2 and 3) is a framework, and the standards it contains have been endorsed by the Central Bank Governors and Heads of Banking Supervision of the Group of Ten countries and many other countries worldwide.
It presents the outcome of the Basel Committee on Banking Supervision’s work over recent years to secure international convergence on revisions to supervisory regulations governing the capital adequacy of internationally active banks.
The Committee expects its members to move forward with the appropriate adoption procedures in their respective countries.
Designed by G10 supervisors and aimed at their ‘internationally active banks’, however it has become bench mark for regulating the global financial markets including best practice for set minimum standards of capital adequacy, and banking regulatory capital management.
Basel Capital Accord (Basel I.0 – CAD 1), was first proposed in 1988 after spectacular failures of a number of financial firms in Europe and USA. Secondly, it was meant to reduce impact and ‘fix’ to a number of problems with Japanese banks as global banks.
The Basel 1.0 proposal first issued in 1988 was amended in April 1993 as Basel 1.5 (CAD 2). In 1996, market risk proposal was enhanced in response to advancement and changes in how banks were internally managing market risk capital especially use of VAR methodologies as regulatory capital management tool from January 1998 (proposal adopted in the US in July 1995).