CEPS Task Force

Basel II and the European Financial System


CEPS Task Force Report:
The New Basel Capital Accord and the Future of the European Financial System
Authors: Rym Ayadi & Andrea Resti

The purpose of this report is to provide a detailed, up-to-date and critical analysis of the New Basel Capital Accord framework. It focuses on the limitations and pitfalls that may deserve further investigation, particularly at the European level. Moreover, it provides a provisional assessment of its effects on small- and medium-sized European banks, as well as small- and medium-sized European enterprises. It examines the procyclicality of the new Accord and offers mechanisms to counter it. Finally, it addresses the challenges of implementing the new rules at the EU level.
Date Published: 1 Apr 2004
Pages: 91
Frederik C. Musch, Former Secretary General of the Basel Committee on Banking Supervision
Andrea Resti, University of Bergamo
Rym Ayadi, CEPS Fellow
1st meeting: 27 Mar 2002
2nd meeting: 4 Nov 2002
3rd meeting: 22 May 2003
4th meeting: 26 Jan 2004

Karel Lannoo

Chief Executive Officer

+32 (0)2 229 39 82

Andrea Resti

Rym Ayadi