Basel II accord and the Greek banking sector

Abstract

This study presents the current regulatory framework of the Basel Committee (Basel II Accord) under which all active banks should operate, as well as the major weaknesses of the 1988 Basel Accord (current regulations). The need for more risk sensitive models in the operation of the banking system led to the proposition of the New Basel Accord which is presented below, according to the last publications made by the Basel Committee. However, there are still concerns about the efficiency of the revised framework. In this study the consequences of the new accord on capital adequacy on the Greek banking system through the use of questionnaires is investigated. 8 Greek banks participated to answer questions regarding their current operation under Basel I and the changes that the revised framework will impose on the Banking sector.