The revised international capital regulations were adopted in June 2004. The key insights of the 239-page document – ‘International Convergence of Capital Measurement and Capital Standards’ – will be discussed in this Stage. For a complete analysis, the reader is invited to download the document from the BIS website (www.bis.org/bcbs). The Basel II regulations will be applied in many countries as of 1 January 2007. But the United States has decided to postpone the process, allowing banks, that qualify, to apply Basel II from 1 January 2008.
 If applicable, capital reductions in the USA will only start in 2009.
Basel II includes three pillars:
The first pillar: minimum capital requirements
This defines the methodology ...