“The Basel Committee on Banking supervision was established to make the banking sector strong enough to withstand economic and financial stress though stringent regulations”. In view of this statement,

a) Explain capital requirements for risk management in banks under Basel-I, Basel-II and Basel-3 norms.

b) Discuss the three pillars as mentioned under Basel-2.

c)Explain the importance of Leverage ratio and Liquidity coverage ratio (LCR) for banks.

Answer rating: 100% (QA)

a Capital Requirements for Risk Management in Banks under BaselI BaselII and BaselIII Norms BaselI BaselI introduced a minimum capital requirement of 8 of riskweighted assets RWAs for banks Assets wer... View the full answer