BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Two
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Ten
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Four
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Three
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Detailed explanation-1: -Understanding Basel II It is based on three main “pillars": minimum capital requirements, regulatory supervision, and market discipline. 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: -The three pillars of Basel III are market discipline, Supervisory review Process, minimum capital requirement.
Detailed explanation-3: -The Basel Committee issued a final package of measures to enhance the three pillars of the Basel II framework and to strengthen the 1996 rules governing trading book capital.
Detailed explanation-4: -The accord in operation: Three pillars. Basel II uses a “three pillars” concept – (1) minimum capital requirements (addressing risk), (2) supervisory review and (3) market discipline.