The second capital accord to be introduced by the Basle Committee to correct and ensure that the capital adequacy requirements for banks was financially and robust enough. This was proposed in 2004 and was implemented fully by 2008 and the main difference was it ensured that banks had a higher capital charge imposed on them if they prescirbed a loan to a small company compared to a large company like Apple. This will be replaced by BASLE III in 2023.