Basel II

INTERNATIONAL CONVERGENCE OF CAPITAL MEASUREMENT AND CAPITAL STANDARDS:

A REVISED FRAMEWORK - COMPREHENSIVE VERSION: JUNE 2006

BASEL COMMITTEE ON BANKING SUPERVISION

i.	Abbreviations
ii.	Introduction
iii.	Structure of this document
	Part 1: Scope of Application
I.	Introduction.
II.	Banking, securities and other financial subsidiaries.
III.	Significant minority investments in banking, securities and other financial entities.
IV.	Insurance entities.
V.	Significant investments in commercial entities.
VI.	Deduction of investments pursuant to this part.
	Part 2: The First Pillar - Minimum Capital Requirements
I.	Calculation of minimum capital requirements.
Ia.	The constituents of capital.
II.	Credit Risk - The Standardised Approach.
III.	Credit Risk - The Internal Ratings-Based Approach.
IV.	Credit Risk - Securitisation Framework.
V.	Operational Risk.
VI.	Market Risk.
	Part 3: The Second Pillar - Supervisory Review Process
I.	Importance of supervisory review.
II.	Four key principles of supervisory review.
III.	Specific issues to be addressed under the supervisory review process.
IV.	Other aspects of the supervisory review process.
V.	Supervisory review process for securitisation.
	Part 4: The Third Pillar – Market Discipline
I.	General considerations.
II.	The disclosure requirements.
	Annexes
Annex 1.	The 15% of Tier 1 Limit on Innovative Instruments.
Annex 1a.	Definition of Capital Included in the Capital Base.
Annex 2.	Standardised Approach – Implementing the Mapping Process.
Annex 3.	Capital Treatment for Failed Trades and Non-DvP Transactions.
Annex 4.	Treatment of Counterparty Credit Risk and Cross-Product Netting.
Annex 5.	Illustrative IRB Risk Weights.
Annex 6.	Supervisory Slotting Criteria for Specialised Lending.
Annex 7.	Illustrative Examples: Calculating the Effect of Credit Risk Mitigation under Supervisory Formula.
Annex 8.	Mapping of Business Lines.
Annex 9.	Detailed Loss Event Type Classification.
Annex 10.	Overview of Methodologies for the Capital Treatment of Transactions Secured by Financial Collateral under the Standardised and IRB Approaches.
Annex 10a.	Supervisory Framework for the Use of “Backtesting” in Conjunction with the Internal Models.
Annex 11.	The Simplified Standardised Approach.