The Bank of Israel said Sunday the country's banks have received the details and an outline of the steps that must be taken to implement the Basel II capital accord plan, first made public in January by Supervisor of Banks, Rony Hizkiyahu. Basel II, or the new Basel Capital Accord, lays down guidelines for determining the minimum capital requirements for banks and tightens the link between credit risk and capital allocation.
These guidelines, which are planned to be adopted by 49 countries, provide a system of models for weighting credit and operational risks run by banks in their loans to retail and corporate customers. Banks have until the end of 2009 to implement the changes.
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