Statements relating to the Basle Capital Accord of July 1988

7 April 1998

Press release

BASLE COMMITTEE ON BANKING SUPERVISION
BANK FOR INTERNATIONAL SETTLEMENTS, CH-4002 BASLE

PRESS STATEMENT

The Basle Committee is today issuing two short statements relating to the Basle Capital Accord. One of these statements is a formal Amendment to the Accord that has the effect of reducing, with immediate effect, the counterparty risk weighting of regulated securities firms from 100% to 20%, subject to certain conditions. The other statement sets out certain principles governing on-balance-sheet netting. This statement is in the form of a consultative paper on which comment is invited from banks and other interested parties by end-June 1998.

The text of these papers can be obtained from the BIS Web Site on the Internet at http://www.bis.org on or after 7th April 1998, from national supervisory authorities or from the Basle Committee Secretariat at the Bank for International Settlements.

7th April 1998