The Basel Committee on Banking Supervision has responded to growing calls for a regulatory overhaul by issuing consultative documents that propose enhancements to the Basel II framework and changes to the way in which value at risk and required capital ratios are calculated.

In a statement released today, the committee said: "In designing Basel II, the Committee intended for it to be a "living framework". With that in mind and as part of its strategic response to address weaknesses revealed by the financial market crisis, the Committee has reviewed Basel II and has developed a series of proposed enhancements to strengthen the framework."