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London City



The Basel Accord Standards consist of recommendations issued by the Basel Committee on Banking Supervision (BCBS) as non-binding guidelines for the supervision of banks by central banks. When adopted by individual central banks, these recommendations become enforceable minimum standards for banks. Currently, there are four Accords that collectively form the Basel Framework, which also includes upcoming proposals by the BCBS.

  • Basel I (1) was published in 1988 defining minimum capital requirements for banks and enforced by G-10 countries in 1992.

  • Basel II (2) was published in 2004 expending and enhancing Basel I proposals. It was obvious expanded proposal was behind market practices by banks.

  • Following 2007-2008 global financial crisis, Basel III (3) was published in November 2010 with inclusion of liquidity.

  • Basel IV (4) was published in 2020 as an enhancement to Basel 3 for phase implementation from 2023.

  • Basel Accord V (5)?. This is inevitable with introduction of AI, ML, new financial markets and products.

Calculate Savings

Pillar I Minimum Capital

Meeting at construction site

Pillar II Supervisory Review

Image by Carl Heyerdahl

    Pillar III Disclosures   

Capital Adequacy Trigger Events

Capital adequacy represents the amount of capital necessary to safeguard depositors' funds. It is classified into tiers (1 and 2) to meet regulators' predetermined requirements for entities. The capital reserve can be seen as a statutory minimum and is calculated based on the Capital Adequacy Ratio, which is the sum of Tier 1 and Tier 2 capital divided by the Risk Weighted Assets.

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