Definition of Basel Accord
Banking supervision rules, including minimum capital requirements, agreed upon by the G10 major western economies in the wake of the messy bank collapse in the 1970s. The rules are set by a committee that meets in Basel, Switzerland, at the Bank for International Settlements.
The first accord was reached in 1988 and its standards are widely followed throughout the world.
The second accord, known as Basel 2 and first published in 2004, introduced risk weighting into the capital requirements for different activities. The Basel Committee now has nearly 30 member countries.