Summary |
The Banks make more international loans, many experts believe that there must be greater international cooperation regarding standards and regulations to lower the risk of bank failure and failure and international financial collapse. In 1988 the basel committee on banking supervision, an international organization of bank regulators based in basel, Switzerland, took the first steps in this direction with the basel capital accord. The accord established a global standard for assessing the financial soundness of banks and required banks to maintain a minimum ratio of capital to risky assets. Many banking experts believe this accord became the primary tool for strengthening the safety of international banking. The accord was eventually adopted by 100 countries.
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