The regulation system has responded to these changes and evolved as turbulent episodes were occurring. Following the crisis of 97/98 there was a general enhancement of regulation and supervision of the financial sector. New International Codes and Standards were developed by the BIS, the IMF, IOSCO and IAIS.
The preparation of a new Capital Accord was initiated and its recent approval will change the standard for capital requirements in a direction more sensitive to risk than the previous Basel I framework. In Europe, the mandatory implementation of new International Accounting Standards introduced changes, not always welcomed, in the reporting of financial institutions with consequences for prudential aspects.