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The Basel II framework is a multilateral framework that is built entirely on three cross pollinating pillars that seek to further align the capital requirements of financial institutions on an international level. The existing 1998 Basel Capital Accord, while undoubtedly effective in increasing the standards adopted by institutions in the international market place, has had many criticisms that the Basel Committee on Banking Supervision have attempted to rectify in the new structure. The most virulent criticisms of the existing Basel I framework include the imbalance in the precise amount of capital needed for any particular institution and the failure of operational risks to be reflected in the capital adequacy ratio. Furthermore, it has also been commented that the existing risk classifications and the current 8% capital adequacy ratio, are not indicative of the current banking environment.