what is BASEL accord and what are BASEL II norms
Answer Posted / jp morgan
Basel was more focused on capital regulations to shield
against financial market shocks.It spelled the capital
reserves to be kept aside to avert the market and
operational risks. Now we have Basel 3 introduced to ensure
that the financial framework does not suffer the type of
breakdown and depression that occurred between 2007 and
2009. It is based on unweighted leverage ratio, 2 additional
capital buffers: a conservation-buffer and a
counter-cyclical buffer; and revised definition for
qualifying as bank capital instruments. It is yet to be
implemented in the emerging economies like India, where the
impact of economic slowdown was less seismic. BIS is still
the prominent regulating power in Basel framework and adherence.
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