From the Basel I 8% Cooke ratio to the Basel II capital ratio

Two practical questions concern first whether the minimum capital ratio would still be set at 8%, and, second, what will the new Basel II capital ratio be called? The answer to the first question is positive. The minimum capital ratio remains at 8%, although the calculation of risk-weighted assets is changing. As to the second question, world banking markets had not made up their minds at the time of writing this book, possibly because of the difficulty in attributing the merits of Basel II to one person only. William McDonough, president of the Federal Reserve Bank of New York, was chairman of the Basel Committee during the early years of negotiations. Jaime Caruana, governor of the Bank of Spain, was the chairman of the Committee in June 2004, when the accord was approved. In the absence of a recognized name, we will name it the Basel II capital ratio.