Basel II Revisited 21 Years Later (2025) | Successes, Shortcomings, Lessons Learned

Basel II

Basel II was a groundbreaking step forward in global banking regulation. It introduced a more refined, risk-sensitive framework, enhanced supervisory oversight, and greater transparency through market discipline.

Some countries embraced its flexibility and sophistication with optimism. But beneath the surface, cracks were forming, and critical blind spots in systemic risk were being overlooked. When the global financial crisis hit, Basel II’s weaknesses were laid bare, and it became a hard-earned yet valuable lesson for regulators and financial institutions alike.