Basel ii

Current crisis also depict flaws of inadequate capital.
wether we should follow Basel ii or more advance form, solvency ii, this article I think is helpful in this regard.
" The aim of Solvency ii is not to increase overall capital but rather to ensure a high standard of risk assessment & efficient capital allocation. It should also contribute to increased transparency & help in the development of a level playing field across Europe"

http://www.abi.org.uk/Display/File/Child/664/CEA_Guide_to_Solvency_II_tillinghast.pdf

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