Weaknesses of Basel I Accord

Basel I and the risk of corporate credit
Along with the success of Market Risk amendment, many bank credit internal change process with a quantitative model similar to the technique because Var:
Var success model by many banks, and
Increased risk of trade credit, because the loan syndication is becoming increasingly complex and sekuritisasi bank loans become more.
Approach of Basel I capital adequacy of the RWA to give the same weight so that the capital needs of the same for all loans, regardless of memperharikan credit grade borrowers.
banks that lend to companies with credit standing is required to have a very good investment with the bank that lend to the company's credit standing with the ugly. This is not a problem for the bank can charge the same to all debtors. However, competition with the bank increased corporate bond market where the margin of credit associated with the bond market credit grading on the bonds issued based on the rating of the institution pemeringkat such as Standard & Poor's and Moody's Investors Service.
The same problem appears to Unsecured personal lending (credit card lending) and a loan to the government (Sovereign loans).