Second, one of Basel II’s starting points has been the need to develop more refined approaches to the measurement of risks. This means allowing banks to make greater use of their own risk modelling approaches where supervisors are satisfied that these models are sound and will be used responsibly.
Third, supervisors have become very conscious of the need to harmonise their principles and practices at both a global and regional level. Basel’s Accord Implementation and Core Principles Liaison Groups are focused on this objective at the international level. A good example of similar activity at a regional level is the work of the Committee of European Banking Supervisors. So far, so good.