The BCBS regulation 1. What are the main differences between the first Ba sel Accord and the second Basel Accord? 2. Explain how the Basel ||| Accord strengthens the banking regulation? Market risk 1. What is the difference between the banking book and the trading book? Define the perimeter of assets for capital requirements. 2. How is calculated the capital requirement with the internal modelbased approach in Basel II? 3. How is calculated the capital requirement with the internal modelbased approach in Basel |||? Credit risk 1. What is the definition of the default in Basel II? 2. Describe the standard approach {SA} to compute the capital requirement in Basel Ill. 3. Define the different parameters of the internal ratings-based {IRE} approach. What are the differences between FIRE and WIRE? 4. Explain the concept of CCF? Why is it difficult to estimate a CCF? Liquidityr risk 1. What is the difference between market and funding liquidity.r risk? Give an example. 2. Describe the liquidity,' coverage ratio {LCR}. 3. Describe the net stable funding ratio {NSFR}. Exercise : Credit default swaps We consider a CD5 EM with fiveyear maturity.r and $1 mn notional principal. The recouewr rate it is equal to E096 whereas the spread sis equal to Iii-DID bps at the inception date. We assume that the protection leg is paid at the default time