Question

The Basel II accord would

The Basel II accord would

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Answer #1

The Basel II accord would guard against the financial and operational risk faced by the banks by holding a required amount of capital. Basel II Accord was published to regulate the international banking standards which states the minimum amount of capital to be maintained by banks against the financial and operational risk faced by the banks. If the risk is more significant, the bank must hold the greater amount of capital to maintain it's solvency. Basel II was issued by the Basel Committee on Banking Supervision to regulate the banking laws.

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