The consultation focuses on the revisions to the international standards of the Basel Capital Accord – known as Basel ll – which establish revised methodology for measuring the risks that a bank faces and the minimum level of capital required.
The Commission is proposing to roll out the new standards from January next year.
Although registered deposit-takers will be most directly affected, the adoption of the latest standards will also be of interest to those using the services of Jersey banks.
The first Basel standards were established in 1988 by the Basel Committee on Banking Supervision (BCBS) and the new changes include an overhaul of the credit risk framework and the introduction for the first time of an operational risk framework.
