Significant legal and regulatory changes are required in order to implement Basel II. Some amendments are already in train and others need attention. They include: •  The legal framework surrounding the perfecting of loan security. Issues such as the enforceability of guarantees, the standards for registration of loan security. •  The impact of local bankruptcy laws.
•  The legal protection of banks against main categories of operational risk. (fraud, IT failures and similar risk)  •  The power of the supervisor to require different capital ratios based on a risk assessment. •  Enforcement powers for the supervisor before the suspension or revocation of licenses.