"We ran this survey because we wanted to find out how prepared credit unions are for Basel II compliance. We issued the findings because we felt it was of strong enough interest to provoke thought and would be useful feedback to the industry.

"Credit Unions facing the challenge of Basel II compliance may be comforted by the knowledge that they are not alone in being uncertain as to how to meet the challenge. Fostering discussion will benefit the industry by leading to heightened awareness of compliance issues."

The Australian Banking Association chief executive David Bell said the banking industry of Australia is one of the most advanced in the Asia-Pacific region in its approach to Basel II.

"A recent survey by [McGraw-Hill Companies Inc.'s] Standard and Poor's found that the banking systems of Australia and Singapore are the most advanced in the Asian region in adopting targets relating to the Basel II capital accord," Bell said.

Setting a global standard