In 1988, the Basel Committee published a set of minimum capital requirements for banks.
[2][3] Formerly, the Basel Committee consisted of representatives from central banks and regulatory authorities of the Group of Ten countries plus Luxembourg and Spain.
The Basel 2.5 revisions introduced stressed VaR and IRC for modelled market risk in 2009-10.
[4] The BCBS also published regulatory standards for the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR);[5] In subsequent years, the Basel Committee updated the standards for market risk, based on a “Fundamental Review of the Trading Book” (FRTB).
[8] A recent OECD study suggest that bank regulation based on the Basel accords encourage unconventional business practices and contributed to or even reinforced adverse systemic shocks that materialised during the financial crisis.
According to the study, capital regulation based on risk-weighted assets encourages innovation designed to circumvent regulatory requirements and shifts banks' focus away from their core economic functions.
Tighter capital requirements based on risk-weighted assets, introduced in the Basel III, may further contribute to these skewed incentives.
[9] In an October 24, 2020 speech at the Bund Financial Summit in Shanghai, Jack Ma described the Basel Accords as a "club for the elderly.