Basel II target institutions (whether Basel II was initially for the largest banks in developed countries.
The Basel Committee focused on facilitating and enhancing information sharing and cooperation among bank regulators in major countries and developing principles for the supervision of internationally active large banks in developed countries. (Kaufman, G.G., 2003). Both Basel’s were designed by regulators from developed economies to meet the main perceived regulatory challenges and their largest banks faced . However, developing countries are not at all represented in the Basel Committee for Bank Supervision (BCBS). The new framework has been designed primarily for adoption by the G-10, and the Basel committee originally expected this group of countries to be ready to implement the framework by the beginning of 2007. Current G-10 members are Belgium, Netherlands, Canada, Sweden, France, Switzerland, Germany, UK, Italy, US and Japan. At the same time, the Basel committee recognizes that many non g-10 countries worldwide may wish to adapt the new framework to their own national realities and circumstances, and to have their own timetable for adopting the new rules. Countries from the European union (EU) are set to comply with the new Basel rules from January 2007. The same deadline applies to advance countries in Asia. However, banking regulators in the US decided to delay adoption at least until January 2008. In September 2006, the four regulators proposed that the IRB (internal ratings-based) approach should apply to the largest and internationally active banks only (26) in total. For the remaining banks, the US regulators are proposing a revised version of the existing capital rules known as Basel IA. Basel II covers all OECD (Organization for Economic ...