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And in many of these nations, building the informational infrastructure necessary for adoption of Basel II is seen not as a worry, but as a part of the larger process of nation building, that is, an opportunity to make money for individuals and companies, and to increase national prosperity. In India, for example, both that nation’s financial sector and the related portions of the IT industry are intensely focused on Basel II. All banks large and small in that nation of more than a billion souls are anxious to be a part of the Basel II process, even if they will never fully implement the accord’s most complex and onerous provisions. Simply achieving compliance with Basel II’s most simple credit risk measurements requirements, known as the Foundation level, is seen as a major goal for financial institutions in India, a nation where 60% of the population still do not have direct access to banks. Indeed, the Financial Express reported yesterday that “The Reserve Bank of India (RBI) intends to take a stringent view of banks that fail to comply with the Basel-II norms by April 1, 2006.” For those of you unfamiliar with the lexicon of Indian bureaucrats, being subject to a “stringent view” is most undesirable. In the EU as well, banks in the former Soviet republics as well as institutions in the NATO member countries are gearing up for Basel II adoption. In most cases, these banks will only ever seek to achieve the Foundation layer of Basel II, but adoption is still a priority. Contrary to the cries of woe heard in Washington last week from the community bankers, EU banks which don’t qualify for Advanced IRB status will not have a sudden advantage in terms of minimum capital levels. In fact, nothing will change.