The main reason is that this system of capital requirements applies - and will continue to apply - to the large majority of G-10 banks and a fortiori to banks elsewhere. Precisely because the Capital Accord is relatively simple, the framework is useful for banks and their supervisors in emerging market countries, and contributes to market transparency. 10.
At the same time, it should be acknowledged that the current standards are not based on precise measures for credit risk, but on proxies for it in the form of broad categories of banking assets. Indeed, banks regularly call for other risk weightings of specific instruments.