Question: QUESTION 4 The Basel II capital accord comprises a framework of three pillars. Pillar 1 established the minimum capital required by a commercial bank and

QUESTION 4 The Basel II capital accord comprises a framework of three pillars. Pillar 1 established the minimum capital required by a commercial bank and corporates three mik components credit risk operational risk and market rik Required Define credit risk (2 marks) 1. What approaches may be used to measure the credit risk capital adequacy component of pillar (4 marks) c. Agencies that purvey credit in the financial system of a country are collectively known as financial institutions Required Explain four special characteristics of financial institutions in your country (4 marks)

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