Basel II - superior and all-encompassing architecture It is widely recognized that Basel II is a major breakthrough in theoretical and practical world of banking industry and a dynamic framework which will be able to adapt to ongoing innovation and change.
Some of the main features (see annexure) of Basel II are noteworthy:  BIS Review 4/2007  1  First, while the new Accord maintains the level of capital adequacy requirements at 8% (Tier 2 capital is restricted to 100% of Tier 1 capital) consistent with Basel I, it has shifted emphasis from regulatory to economic capital framework, while giving recognition to new risk mitigation techniques (default protection etc.)