The Basel Committee published its third Consultative Paper ("CP3"), which it proclaims to be its final proposal, regarding the new Basel Capital Accord ("Basel II"). A detailed summary of the previous proposal is set forth in the October 23, 2001 Alert. Moreover, as discussed in the April 22, 2003 Alert, US bank regulators only intend to implement the most advanced version of Basel II (and only expect the largest US banks to apply Basel II rather than the current approach), and will publish an advanced notice of proposed rulemaking this summer to begin that process. The final rules applying the Basel II framework to the largest US banking institutions are anticipated to be effective in the US in early 2007. The comment period for CP3 expires July 31, 2003.
