The Irish Bankers' Federation is concerned that supervision of banks will not be equally applied if the latest proposals from the Basel Committee on Banking Supervision are adopted. The committee has set out proposals for a new Basel Capital Accord in its second consultation paper.

In a "guarded welcome", the IBF said it was concerned that some of the new rules would be non-compulsory. This could lead to unequal application of the rules, it warned. But the IBF strongly welcomed the "evolutionary approaches" proposed in the credit risk and operational risk areas, which it said would reward parties who invest in more sophisticated risk management techniques.