GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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KYC norms
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Credit Policy
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Fiscal Policy
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Basel accord
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Detailed explanation-1: -The New Capital Adequacy Framework prescribed for the banks is commonly known as Basel Accord. The Basel Accords are the three series of banking regulations. It requires financial institutions to maintain enough cash reserves to cover operational risks.
Detailed explanation-2: -Under Basel III, the minimum capital adequacy ratio that banks must maintain is 8%. 1 The capital adequacy ratio measures a bank’s capital in relation to its risk-weighted assets.
Detailed explanation-3: -Basel 4 included new standards for credit risk and operational risk and a credit valuation adjustment. It also introduced an output floor, revisions to the definition of the leverage ratio and the application of the leverage ratio to global systemically important banks.