The integration of the financial markets has made  2  “Once every banking institution […] is free to accept deposits from, and to grant loans to, any customer […] the area in which ‘its’ banking system operates will be lost.
Basel II presents us with an opportunity to enhance risk management systems in our banks, upgrade our supervisory approaches and inculcate market discipline. This can only serve to enhance financial stability. Central Bank recently issued an information memorandum to banks and non-bank financial institutions thereby setting the stage for the implementation of Basel II.