The Basel II Accord requires that banks and other Authorized Deposit-taking Institutions (ADIs) communicate their daily … aggressive risk management strategy, and evaluate the effects of the Basel II Accord on risk management. We also examine how risk … practices were monitored and encouraged by the Basel II Accord regulations during the financial crisis. …

The Basel capital adequacy ratios lost credibility with financial markets during the crisis. This paper argues that … failure was the result of the reliance of the Basel standards on overstated asset values in reported equity capital. The … weaknesses in the Basel ratios are being addressed. Moreover, the U.S. tests' success was the result of a combination of …