While it may be so for some banks, I would venture to mention that Basel II implementation has another dimension which offers considerable opportunities to banks. I would like to highlight two opportunities that are offered to banks, viz., refinement of risk management systems; and improvement in capital efficiency. 6. Comprehensive risk management: Under Basel I banks were focused on credit and market risks.
These measures resulted in disruptions in global supply chains; in lower world trade, industrial production and international commodity prices; in a reversal of cross-border capital flows; and, finally, in a dramatic decline in labour demand and a sharp decrease in employment and income worldwide. The pandemic has caused a great deal of uncertainty, making macroeconomic forecasting a particularly difficult exercise.