BASEL II The purpose of Basel II, is to create an international standard that banking regulators can use when creating regulations about how much capital banks need to put aside to guard against the types of financial and operational risks banks face. Advocates of Basel II believe that such an international standard can help protect the international financial system from the types of problems that might arise should a major bank or a series of banks collapse. In practice, Basel II attempts to accomplish this by setting up rigorous risk and capital management requirements designed to ensure that a bank holds capital reserves appropriate to the risk the bank exposes itself to through its lending and investment practices. Generally speaking, these rules mean that the greater risk to which the bank is exposed, the greater the amount of capital the bank needs to hold to safeguard its solvency and overall economic stability. . Who Should Attend Anyone is encouraging improvements in Risk Management and enhance internal assessments of capital adequacy. Develop a measure of capital that is: - More risk sensitive than the current approach. - Better suited to the complex activities of internationally, active banks. - Capable of adapting to market and product evolution.