According to the introduction of the new Accord, issued in June 2004: “The objectives are to broadly maintain the aggregate level of minimum capital requirements, while also providing incentives to adopt the more advanced risk sensitive approaches of the revised Framework” The new framework intends to achieve this objective through three Pillars: The first pillar aligns the minimum capital requirements more closely to banks’ actual underlying risks and allows banks, under certain preconditions, to rely on their own measures of those risks.
It changes significantly the calculation of capital requirements against credit risk and introduces capital requirements against operational risk.