In this manner, Basel II represents a major step forward in banking regulation. While the existing Basel I capital regime was a significant advance when introduced in 1988, it has become outdated for large, internationally active banking organizations. Retaining Basel I for these institutions would have widened the gap between their regulatory capital requirements and their actual risk profiles.
At last there are clear indications that the operational processes put in place  2  BIS central bankers’ speeches  to accomplish this goal are gaining traction and that the problem can finally be brought under control. What will Irish banking look like at the end of the decade; what would we like it to look like?