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Basel Accord

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Basel Accord
Agreement concluded among country representatives in 1988 in Switzerland to develop standardized risk-based capital requirements for banks across countries.

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The New Basel Accord proposes to use precisely those measures of risk and credit quality that caused such fiascos as Enron, WorldCom, and Parmalat.
Basel Committee on Banking Supervision, "Capital Requirements and Bank Behavior: The impact of the Basel Accord," Working Paper, BIS, Basel, Switzerland, 1999.
Basel Accord is now in it's third draft, and is expected to be ready for adoption early in 2004.
 
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