what is BASEL accord and what are BASEL II norms
Answer Posted / mehraj wani
Basel accord can be regarded as the regulations for banks
set by Basel Committee, these regulations are mainly to
protect the interest of the depositors in a Bank. The Basel-
I accord was accountable for two risks viz, Credit Risk and
Market Risk but the Basel-II accord came up with an equally
important risk i.e., operational Risk. The main difference
between Basel-I accord and Basel-II accord is that Basel-!
accord was not confined with the rating factor and was
based on the fact "one size fits all" but Basel-II accord
mainly focuses on the rating factors of the borrowers.
The following are the norms of Basel-II Accord:
1)Minimum Capital Requirement
2)Supervisory Review Process
3)Market Decipline
Is This Answer Correct ? | 97 Yes | 21 No |
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