It is high time for larger banks to seriously upgrade their systems and skill sets and migrate to the Advanced Approaches. (ii)  Migration to Basel III  (a)  Capital  11. Basel II was designed because its predecessor i.e.
Basel I was considered risk insensitive and too preliminary to cope up with the rapid developments in the financial sector resulting in substantial regulatory arbitrage. The basic purpose of Basel II was to leverage on the risk management systems of internationally active banks and use that for enhanced risk management architecture and, in the process, have better measurement of capital requirements.