The paper analyses the current two main initiatives in capital adequacy regulation for banks: the EC Capital Adequacy Directive (CAD) and the Basle Committee on Banking…
Abstract
The paper analyses the current two main initiatives in capital adequacy regulation for banks: the EC Capital Adequacy Directive (CAD) and the Basle Committee on Banking Supervision market risk proposals. The main elements of the CAD are reviewed, problem areas are identified and differences with the Basle proposals are noted. Finally, the paper sets out the likely impact of the CAD and the Basle proposals on UK banks.