Answer Posted / sudhanshu
Basel II is the second of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision. The purpose of Basel II, which was initially published in June 2004, is to create an international standard that banking regulators can use when creating regulations about how much capital banks need to put aside to guard against the types of financial and operational risks banks face. Advocates of Basel II believe that such an international standard can 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 practice, Basel II attempts to accomplish this by setting up rigorous risk and capital management requirements designed to ensure that a bank holds capital reserves appropriate to 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.
Is This Answer Correct ? | 25 Yes | 9 No |
Post New Answer View All Answers
Give Any Three Advantages of Joint Stock Company?
What Are The Different Types Of Equity Market?
What do the banks do for the society?
How can a bill collector contact debtors?
Hi this is praveen completed MBA with Finance and HR as specializations in 2007 im very much intrested in appearing for group exams? so I want to know when will be the next edition? ie how I need to apply for groups for the 1st time?
Have you faced any failure in life? If yes, how did you overcome it?
What are the advantages and disadvantages of an IPO?
Which software is used in the banking sector?
What Is Home Equity Loan?
Walk me through a DCF…
How can Banks reduce multi banking with the ultimate aim of increasing profitability?
What is the monetary policy of RBI?
How do you rate your communication skills - 1-10 scale?
Do bank charge for overdraft protection service?
What's Demat A/c?