Overseen by the Basel Committee on Banking Supervision.

http://www.bis.org/publ/bcbs/basel2enh0901.htm

Basel II expands and strengthens the risk and capital management requirements of Basel I to ensure that a bank has adequate capital for the risk the bank exposes itself to through its lending and investment practices.

Basel II uses a "three pillars" concept – (1) minimum capital requirements, (2) supervisory review and (3) market discipline. The first pillar deals with maintenance of regulatory capital calculated for three major components of risk that a bank faces: credit risk, operational risk, and market risk. The second pillar provides a framework for dealing with all the other risks a bank may face, such as systemic risk, pension risk, concentration risk, strategic risk, reputational risk, liquidity risk and legal risk. These third pillar complements the minimum capital requirements and supervisory review process by developing a set of disclosure requirements which will allow the market participants to gauge the capital adequacy of an institution.

Enhancements to the Basel II framework

Banks in member countries Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States.

http://en.wikipedia.org/wiki/Basel_II