Implementation of Basel II


  • by Jaime Caruana


In this article Jaime Caruana, Governor of the Bank of Spain and Chairman of the Basel Committee on Banking Supervision, first discusses the current status of the Basel II Accord. Next, he offers his perspective on macroeconomic issues related to the capital framework, focusing especially on pro-cyclicality. Finally, he discusses three important Basel II implementation issues, namely calibration, validation, and cross-border supervision.