Basel II Accord Tightens Credit Risk Control for Taiwan Banks.
The Basel II Accord affects how medium-sized banks in Taiwan manage credit risk and marketing policies. It sets a capital ratio of 8% and requires banks to meet minimum standards for capital adequacy. The Accord uses three pillars to ensure financial stability: minimum capital requirements, supervisory review, and market discipline. Banks in Taiwan are facing challenges due to the stricter regulations of Basel II, leading to tighter credit risk control.