Establishing a code of discipline 13. But let’s say that we establish a case for doing something about a spillover. The first step would be to develop a consensus on a code of discipline.
Basel II will also create more neutral incentives between retaining exposures on the balance sheet and transferring them to the capital markets through securitisations. It will reinforce capital requirements for banks’ trading  BIS Review 53/2008  1  books, which are rapidly growing. And last, Basel II will enhance disclosures of banks’ risk profiles, notably with regard to structured credit and securitisation activities.