ABSTRACT
The EU followed a very different approach to promulgating capital adequacy standards when compared to the United States. Unlike the United States, the EU quickly moved to expand the coverage of the Basel Accord to investment banks and the market risks of commercial banks. In this respect, the EU moved more quickly than the Basel Committee in expanding the scope and coverage of a transnational capital regulatory framework, though with the unique goal of forging a single continental marketplace for financial services within a single prudential regulatory framework.
