BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Capitaladequacyoffinancialinstitutions
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improvement of the banking sector’s ability to deal with financial and economic stress
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technology upgradation
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training of banking staff
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Detailed explanation-1: -Basel I: the Basel Capital Accord With the foundations for supervision of internationally active banks laid, capital adequacy soon became the main focus of the Committee’s activities.
Detailed explanation-2: -The first Basel Accord, known as Basel I, was issued in 1988 and focused on the capital adequacy of financial institutions.
Detailed explanation-3: -Tier 1 capital represents the strongest form of capital, consisting of shareholder equity, disclosed reserves, and certain other income. Under the Basel III standards, banks must maintain the equivalent of 6% of their risk-weighted assets in Tier 1 capital.
Detailed explanation-4: -Following comments on a consultative paper published in December 1987, a capital measurement system commonly referred to as the Basel Capital Accord (or the 1988 Accord) was approved by the G-10 Governors and released to banks in July 1988.