1
Question
Which of the following are included in the pillars of BASEL-II guidelines:
Which of the following statements is/are correct?
Which of the following are included in the pillars of BASEL-II guidelines:
Which of the following statements is/are correct?Open in App
Solution
The correct option is D 1,2 and 3
BASEL II guidelines were based on three parameters, which the committee calls it as pillars.
Capital Adequacy Requirements: Banks should maintain a minimum capital adequacy requirement of 8% of risk assets.
Supervisory Review: According to this, banks were needed to develop and use better risk management techniques in monitoring and managing all the three types of risks that a bank faces, viz. credit, market and operational risks.
Market Discipline: This need increased disclosure requirements. Banks need to mandatorily disclose their CAR, risk exposure, etc to the central bank.
Basel II norms in India and overseas are yet to be fully implemented.
BASEL II guidelines were based on three parameters, which the committee calls it as pillars.
Capital Adequacy Requirements: Banks should maintain a minimum capital adequacy requirement of 8% of risk assets.
Supervisory Review: According to this, banks were needed to develop and use better risk management techniques in monitoring and managing all the three types of risks that a bank faces, viz. credit, market and operational risks.
Market Discipline: This need increased disclosure requirements. Banks need to mandatorily disclose their CAR, risk exposure, etc to the central bank.
Basel II norms in India and overseas are yet to be fully implemented.
Suggest Corrections
0
Similar questions
View More
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
