Basel II: Challenges and Risks (Accord on the International Convergence of Capital Measurement and Capital Standards, 1988‪)‬

ABSTRACT This paper presents a comprehensive overview of the New Basel Capital Accord (Basel II). The study raises a number of issues and research questions concerning the Basel II capital adequacy framework as well as the regulatory capital treatment of asset securitization and their potential impact on current competitive positions of banks and the securitization markets. The article also briefly discusses the challenges and risks of implementation of Basel II in the U.S. and Asia-Pacific countries.