The strong expansion and increasing complexity of the financial markets and banking organisations since the Basel I framework was drawn up have made it necessary to formulate a more sophisticated framework. The Basel Committee therefore took on the drafting of new international standards, and the first proposal was put forward in 1999. This work has proved to be more complex than expected.
The Committee has on several occasions issued consultative papers inviting the financial world, authorities and other stakeholders to comment on the drafts put forward. This process has been quite comprehensive, but also highly valuable, since it has given all countries and parties the opportunity to table suggestions and constructive criticism. In this way, a number of special circumstances could be taken into consideration.