Abstract: The Basel Accords are multinational accords that set minimum capital requirements for banks. Capital is the difference between a bank's assets and liabilities. This chapter explores the Basel Accords, including Basel I, II, and III. It explains the importance of capital. The chapter focuses on credit risk, market risk, operational risk, and liquidity risk. Basel I, the first of the Basel Accords, set the original minimum capital adequacy ratio requirements. Basel II, which was proposed in 1999, revised Basel I's capital framework. Basel III's revisions to the capital framework added additional capital buffers, standards in relation to liquidity, and other new requirements. The objectives of the Basel Accords are to strengthen the soundness and stability of the international banking system and to do so in a fair and consistent manner. The challenges that the Basel Accords work to address are complex and impact many stakeholders across multiple jurisdictions.
Publication Year: 2017
Publication Date: 2017-06-06
Language: en
Type: other
Indexed In: ['crossref']
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Cited By Count: 1
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