SINGAPORE : The Monetary Authority of Singapore on Friday said that Basel II rules will come into effect in Singapore from next year.

The rules are aimed at improving the risk management of banks, as they link the capital adequacy requirements with the actual risks faced by a bank.

Banks with a higher risk profile will have higher regulatory capital requirements.

Basel II was formally known as the International Convergence of Capital Measurement and Capital Standards: A Revised Framework.

It was established by the Basel Committee on Banking Supervision in 2004. - CNA/ms