Proposals for International Convergence of capital measurement and standards

This version

BCBS  | 
15 December 1987
Status:  Closed
Topics: Credit risk

The Basle Committee on Banking Regulations and Supervisory Practices has, for several years, been working to achieve a strengthening in the capital resources of international banks in order to help strengthen the stability of the international banking system. At the same time, achieving some convergence of capital adequacy standards in national supervisory regimes has been increasingly realised to be a desirable objective in order to remove an important source of competitive inequality for banks operating internationally. Accordingly, the Committee was charged by the G-10 central-bank Governors to try to achieve a common approach among its members to measuring banks' capital adequacy and establishing minimum standards for banks undertaking significant cross-border business. This paper sets out the conclusion the Committee's discussions (reflecting as appropriate important minority views) in the form of a proposal for a common framework of capital adequacy measurement and a common minimum target capital standard to be achieved and maintained by banks operating internationally.