IT Regulatory Compliance in North America

CHAPTER 4: BASEL 2

The Bank for International Settlements¹ (‘BIS’) is an international organization based in Basel, Switzerland, which fosters international monetary and financial cooperation and serves as a bank for central banks.

BIS supports the Basel Committee on Banking Supervision, which is made up of members from 13 countries around the world. It has over 30 technical working groups dealing with financial issues from capital adequacy to risk management.

The Basel 2 Accord is formally titled: ‘International Convergence of Capital Measurement and Capital Standards: a Revised Framework’. It was first published in June 2004 and has been revised and updated since; the most current version was published in June 2006. Basel 2 has thee ‘pillars’: ...