The Basel Accords have, over time, shaped the development of the financial markets as different products become more or less attractive for banks to offer and businesses to take up on a risk-adjusted return basis. After the financial crisis, the Basel III accords greatly increased the sophistication of the regime and addressed different areas of risk which, it was felt, had been insufficiently provided for with consequent risks to financial stability. The latest iteration, Basel 3.1, was finalised in 2017, but political agreement on implementation has been slow in coming. In most jurisdictions, including the EU, UK and US, it is only in the past year or so that these newest updates and revisions are starting to appear in legislative and regulatory dialogue, and banks are starting to prepare for implementation.
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