Basel II is the second of the Basel Accords, (now extended and effectively superseded by Basel III), which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision.

Basel II, initially published in June 2004, was intended to create an international standard for banking regulators to control how much capital banks need to put aside to guard against the types of financial and operational risks banks (and the whole economy) face. One focus was to maintain sufficient consistency of regulations so that this does not become a source of competitive inequality amongst internationally active banks. Advocates of Basel II believed that such an international standard could help protect the international financial system from the types of problems that might arise should a major bank or a series of banks collapse. In theory, Basel II attempted to accomplish this by setting up risk and capital management requirements designed to ensure that a bank has adequate capital for the risk the bank exposes itself to through its lending and investment practices. Generally speaking, these rules mean that the greater risk to which the bank is exposed, the greater the amount of capital the bank needs to hold to safeguard its solvency and overall economic stability.

Basel ( /ˈbɑːzəl/) or Basle ( /ˈbɑːl/; German: Basel; pronounced [ˈbaːzəl]) is Switzerland's third most populous city with about 166,000 inhabitants. Located where the Swiss, French and German borders meet, Basel also has suburbs in France and Germany. With 830,000 inhabitants in the tri-national urban agglomeration as of 2004, Basel is Switzerland's second-largest urban area.

Located in northwest Switzerland on the river Rhine, Basel functions as a major industrial centre for the chemical and pharmaceutical industry. The Basel region, culturally extending into German Baden-Württemberg and French Alsace, reflects the heritage of its three states in the modern Latin name: "Regio TriRhena". It has the oldest university of the Swiss Confederation (1460). Basel is German-speaking. The local variant of the Swiss German dialects is called Basel German.

Basel is among the most important cultural centres of Switzerland. The city comprises a large number of theatres and many museums, including the Museum of Fine Arts, the world's oldest art collection accessible to the public. In addition the Theater Basel was chosen in 1999 as the best stage for German-language performances and in 2009 & 2010 as "Opera of the Year" by German Opera Magazine "Opernwelt".