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Basel 1, he says was "more humble", as regulators tried to establish good principles.
Broadly, Basel 2 banks are likely to have lower minimum capital requirements than Basel 1 banks.
These standards are often known as Basel 1, after the Swiss city where the international central bankers' group, the Bank for International Settlements, has its headquarters.The problem is that Basel 1's rules predated the boom in securitisation.
Under Basel 1, charges would have gone up by 22% in any case, making Basel 2's contribution 14%.
In fact, Basel 1 is little different from the lowest of Basel 2's three grades of sophistication.
The minimum capital levels set by the Basel 1 accord in the late 1980s in effect endorsed the overall amount of capital in the system at that point.
Similar(18)
9.37pm GMT Final score: Basel 1-0 Chaveea Chelsea have qualified for the knock-out stages, but tonight's was as poor a performance as they've produced for some time.
Cluj beat Basel 2-1 in Romania.
Basel 2 has three main components, known as "pillars".
Basel 2, a revised set of rules, explicitly permitted this.
But Basel 2 is not yet in place.
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