Banks to prepare for Basel II

China's banking regulator has told big banks to speed up their efforts to prepare for the implementation of the New Basel Capital Accord this year.

The New Basel Accord is an international agreement that includes guidelines on how large international banks should manage their risks. It touches on issues like minimum capital requirements, supervision of capital management and the public disclosure of information regarding banks' risk exposures and capital positions.

Large commercial banks with overseas operations and substantial international business are required to implement the New Basel Capital Accord by 2010, said Liu Mingkang, chairman of the China Banking Regulatory Commission.