Extensive work by the Bank for International Settlements (BIS), the Basel Committee on Banking Supervision (BCBS), the Financial Stability Forum (FSF), as well as many other international organisations and national supervisory authorities, will form a solid base for the discussions in the next two days. The discussions on dealing with weak banks and international bank insolvency are clearly important in these times of turmoil.
Since capital is an effective, yet costly, buffer to protect depositors from the effects of banking problems, the scheduled discussion on the draft Basel II Capital Accord is very opportune.