Both, our overall governance and corporate governance needs improvement. In fact, we need better governance at every level – from hospital and schools to polity, firms, non-profit institutions, sports, banking and finance, regulation, land records and even in our daily lives. Our governance deficit, in some form, is reflected in our ranking on ease of doing business.
Rationale for moving to Basel II The current Basel I capital framework, adopted nearly twenty years ago, has served us well but has become increasingly inadequate for large, internationally active banks that are offering ever more complex and sophisticated products and services. We need a better capital framework for these large, internationally active banks, and we believe that Basel II is such a framework.