Question

Explain basel ii norms and minimum capital requirements in basel ii norms.

Answer 1

Answer:

Basel II divides the eligible regulatory capital of a bank into three tiers. ... The main innovation of Basel II in comparison to Basel I is that it takes into account the credit rating of assets in determining risk weights. The higher the credit rating, the lower risk weight.

Answer 2

Basel II provides guidelines for calculation of minimum regulatory capital ratios and confirms the definition of regulatory capital and an 8% minimum coefficient for regulatory capital over risk-weighted assets. Basel II divides the eligible regulatory capital of a bank into three tiers........