Capital Adequacy- Basel Norms
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Bank Financial Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the primary objective of Basel Norms in banking regulation?
Basel Norms aim to ensure that banks maintain adequate capital to cover their risks, thereby promoting financial stability and soundness in the global banking system.
What is the full form of BCBS in banking regulation?
Basel Committee on Banking Supervision
Which international body issues the Basel Accords?
The Basel Committee on Banking Supervision (BCBS), housed at the Bank for International Settlements (BIS) in Basel, Switzerland, issues the Basel Accords.
In which city is the Bank for International Settlements (BIS) headquartered?
Basel, Switzerland
What does Capital Adequacy Ratio (CAR) measure?
CAR measures a bank's available capital as a percentage of its risk-weighted assets (RWA), indicating the bank's ability to absorb losses before becoming insolvent.
What year was the Basel I Accord introduced?
1988
What was the minimum Capital Adequacy Ratio prescribed under Basel I?
Basel I prescribed a minimum CAR of 8% of risk-weighted assets, which RBI raised to 9% for Indian banks.
What was the focus of Basel I in terms of risk?
Only credit risk was addressed
Video classes for this chapter
Capital Adequacy- Basel Norms
Capital adequacy- Basel norms Part 1
Capital adequacy- Basel norms Part 2
Capital Adequacy- Basel Norms
Capital adequacy- Basel norms Part 1
Capital adequacy- Basel norms Part 2
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