UNDERSTANDING BASEL ACCORD
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Treasury Investment and Risk Management — Treasury Investment and Risk Management.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the Basel Accord?
The Basel Accord is a set of international banking regulations developed by the Basel Committee on Banking Supervision (BCBS) to standardize capital adequacy requirements and risk management practices across member countries.
What year was the first Basel Accord established?
Basel I was established in 1988.
Which body developed the Basel Accords?
The Basel Committee on Banking Supervision (BCBS), established in 1974 under the auspices of the Bank for International Settlements (BIS) in Basel, Switzerland, developed the Basel Accords.
What does BCBS stand for in the context of banking regulation?
Basel Committee on Banking Supervision.
What was the primary objective of Basel I?
Basel I, introduced in 1988, primarily aimed to establish a minimum capital requirement of 8% of risk-weighted assets to ensure banks held sufficient capital against credit risk.
What is the full form of CAR in banking?
Capital Adequacy Ratio.
What is the minimum Capital Adequacy Ratio (CAR) prescribed under Basel I?
Basel I prescribed a minimum Capital Adequacy Ratio (CAR) of 8% of risk-weighted assets, ensuring banks maintain adequate capital buffers against credit risk exposure.
Under Basel I, which two types of capital were recognized?
Tier 1 (core) and Tier 2 (supplementary) capital.
Video classes for this chapter
More chapters in [UPDATED] Risk Management
Related articles & notes
In-depth Treasury Investment and Risk Management guides from our blog.
Master the full TREASURYINVE syllabus
Every chapter of Treasury Investment and Risk Management — videos, tests, notes and one-liner decks in one place.