Editing Basel Accords (section)

==Criticism==
The framework's approach to risk which is based on risk weights derived from the past was criticised for failing to account for the uncertainty in the future.<ref>{{cite book |author1=John Kay |author2=Mervyn King |author1-link=John Kay (economist) |author2-link=Mervyn King, Baron King of Lothbury |title=Radical Uncertainty |date=2020 |publisher=W. W. Norton & Company |isbn=9781324004776 |page=311}}</ref> A recent [[OECD]] study suggest that bank regulation based on the Basel accords encourage unconventional business practices and contributed to or even reinforced adverse systemic shocks that materialised during the [[2008 financial crisis]]. According to the study, capital regulation based on risk-weighted assets encourages innovation designed to circumvent regulatory requirements and shifts banks' focus away from their core economic functions. Tighter capital requirements based on risk-weighted assets, introduced in the Basel III, may further contribute to these skewed incentives. New liquidity regulation, notwithstanding its good intentions, is another likely candidate to increase bank incentives to exploit regulation.<ref>{{cite book|publisher=OECD Publishing |date=December 2011|doi = 10.1787/5kg0ps8cq8q6-en|series = OECD Economics Department Working Papers|doi-access=free |title=Systemically Important Banks and Capital Regulation Challenges }}</ref>

In an October 24, 2020 speech at the Bund Financial Summit in Shanghai, [[Jack Ma]] described the Basel Accords as a "club for the elderly."<ref name=":Zhang">{{Cite book |last=Zhang |first=Angela Huyue |title=High Wire: How China Regulates Big Tech and Governs Its Economy |publisher=[[Oxford University Press]] |year=2024 |isbn=9780197682258}}</ref>{{Rp|page=50}}