Shoot-out at the Basel corral

Mixed views continue to be expressed about the Basel Committee on Banking Supervision's recommendations for revising the 1988 Accord on capital standards. The new Basel II agreement would maintain in principle the 8% risk-weighted capital requirement, but would alter the risk weights allocated to asset categories. This would give bank managers and supervisors greater flexibility in setting adequate capital. The key element of the Basel Committee consultation paper is the new minimum capital requirement, which adds further risk brackets.