Editing Basel II (section)

==Objective==
The final version aims at:
# Ensuring that [[Capital requirement|capital allocation]] is more risk-sensitive;
# Enhancing disclosure requirements which would allow market participants to assess the [[capital adequacy]] of an institution;
# Ensuring that [[credit risk]], [[operational risk]] and [[market risk]] are quantified based on data and formal techniques;
# Attempting to align economic and regulatory capital more closely to reduce the scope for [[regulatory arbitrage]].

While the final accord has at large addressed the regulatory arbitrage issue, there are still areas where regulatory [[capital requirement]]s will diverge from the [[economic capital]].