80 bill. Throughout 2007, supported by a decline in the BI rate along with macroeconomic stability, credit grew according to the targets set by banks at the beginning of the year and recorded growth of 24.3%. The recent noteworthy credit growth indicates that banks have returned to contributing significantly to the funding of overall national development.
As we noted earlier, Basel II failed to demand adequate loss absorbing capital to cover market risk. To remedy this, Basel III strengthens the counterparty credit risk framework in market risk instruments. This includes the use of stressed input parameters to determine the capital requirement for counterparty credit default risk.