Could anyone please explain, what are basel-i and basel-ii?
Answer Posted / abhishek chauhan
What is Basel 1?
• Aimed to standardized the computation of riskbased
capital across banks and across countries.
• Issued in 1988 by the Basel Committee on
Banking Supervision, a group of banking
supervisors which secretariat is based at the Bank
for International Settlements in Basel,
Switzerland.
What is Basel 1?
Capital charge depend on credit risk modeling .Risk weights
depend on internal ratings
(PD/LGD) .Risk weights depend on external ratings. Different
risk weights for different
asset class 0% - GS 100% - others 100% RW for all assets
1. OECD – nonOECD countries
2. OECD – nonOECD incorporated banks
3. Residential mortgage
4. Others
| Is This Answer Correct ? | 6 Yes | 1 No |
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