One of the major emphasis of Basel II is that banks should have.....[Allahabad Bank 2010]

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

One of the major emphasis of Basel II is that banks should have____[Allahabad Bank 2010]

A	adequate Capital Adequacy Ratio
B	only few branches in urban centres
C	more and more branches in rural areas
D	core banking mode of operation

Explanation:

Detailed explanation-1: -Minimum capital requirements play the most important role in Basel II and obligate banks to maintain certain ratios of capital to their risk-weighted assets.

Detailed explanation-2: -Currently, the minimum ratio of capital to risk-weighted assets is 8% under Basel II and 10.5% under Basel III. 12 High capital adequacy ratios are above the minimum requirements under Basel II and Basel III.

Detailed explanation-3: -Banks shall maintain a minimum capital to risk weighted assets ratio of 9%.

Detailed explanation-4: -The purpose of Basel II is to create an international standard that banking regulators can use when creating regulations about how much capital banks need to put aside to guard against the types of financial and operational risks banks face.

There is 1 question to complete.