Basel iii Accord

Basel III: International Convergence of Capital Measurement and Capital Standards: a Revised Framework June 2004
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Part 1:         Scope of Application
Part 2:         The First Pillar – Minimum Capital Requirements
Parts 3,4:   The Second Pillar – Supervisory Review Process and The Third Pillar – Market Discipline

Annexes: Document

Basel III: International Convergence of Capital Measurement and Capital Standards: a Revised Framework June 2004

Note: This document has been incorporated in the comprehensive version of International Convergence of Capital Measurement and Capital Standards: A Revised Framework, including the elements of the 1988 Accord that were not revised during the Basel III process, the 1996 Amendment to the Capital Accord to Incorporate Market Risks, and the 2005 paper on The Application of Basel III to Trading Activities and the Treatment of Double Default Effects.

Introduction

  1. This report presents the outcome of the Basel Committee on Banking Supervision’s (“the Committee”) work over recent years to secure international convergence on revisions to supervisory regulations governing the capital adequacy of internationally active banks. Following the publication of the Committee’s first round of proposals for revising the capital adequacy framework in June 1999, an extensive consultative process was set in train in all member countries and the proposals were also circulated to supervisory authorities worldwide.The Committee subsequently released additional proposals for consultation in January 2001 and April 2003 and furthermore conducted three quantitative impact studies related to its proposals. As a result of these efforts, many valuable improvements have been made to the original proposals. The present paper is now a statement of the Committee agreed by all its members. It sets out the details of the agreed Framework for measuring capital adequacy and the minimum standard to be achieved which the national supervisory authorities represented on the Committee will propose for adoption in their respective countries. This Framework and the standard it contains have been endorsed by the Central Bank Governors and Heads of Banking Supervision of the Group of Ten countries.