Basle Committee minimum standards: international regulatory response to the failure of BCCI.

The new minimum standards adopted by the Basle Committee on Banking Supervision in response to the failure of the Bank of Credit and Commerce International do not significantly improve international banking regulation. The main feature of the new minimum standards is the placement of international banks under consolidated supervision by regulators in their home country. However, the standards face difficulties in implementation and contain gaps which could enable banks to avoid regulation. Responses of the European Community, the US and the UK are also examined.