Question

Basel II relates to which one of the following? 

(a) International standards for safety in civil aviation 

(b) Measures against cyber crimes 

(c) Measures against drug abuse by sportspersons 

(d) International standards for measuring the adequacy of a bank’s capital

Answer 1

(d) Basel II is the second of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision. The purpose of Basel II, which was initially published in June 2004, is to create an international standard that banking regulators can use when creating regulations about how much capital banks need to put aside to guard against the types of financial and operational risks banks face.