INTRODUCTION TO BIS/BASEL II

As perceived generally, the banks around the world are not the only entities affected by the BIS/BASEL II, the access to borrowing and the spread disbursed will also be affected.

BIS/BASEL II prime objective is to enhance the physical condition and stability of the banking sector. One of the actions visualized under BIS/BASEL II is to accept a lower capital provision for loans granted by banks provided they demonstrate that they are operating under a sophisticated risk management system, which definitely gives them a considerable competitive advantage.

Brief historical background

The BASEL I

The BASEL II