The Basel Committee has outlined a plan to address the weaknesses the financial crisis has shown up. The plans include:
- strengthening the risk capture of the Basel II framework;
- enhancing the quality of Tier 1 capital;
- enabling supervisors better to assess funding liquidity at crossborder banks; and
- strengthening counterparty risk capital, risk management and disclosure as well as governance practices.
There will be various consultations in early 2009.