Let me highlight the fact that the entire process of development of the theoretical and practical literature on banking regulations and supervision owes its origin to the Basel Capital Accord which was introduced around 20 years ago. We all need to thank this innovation because it has served the banking industry well in the two last decades or so.
But with the advent of the Asian financial crises in particular, and a number of other crises, the Latin American, the Russian, etc., the banking industry as a whole has come to recognize that Basel I fails to properly align capital with the actual risk profiles of the banks.