Basel norms refer to broad supervisory standards and principles of sound banking practices which are formulated by the Basel Committee on Banking Supervision (BCBS) located in Basel, Switzerland.
This committee works under BIS (Bank for International Settlement) which acts as the central bank of central banks of which RBI is also a member.
Basel norms refer to broad supervisory standards and principles of sound banking practices which are formulated by the Basel Committee on Banking Supervision (BCBS) located in Basel, Switzerland.
This committee works under BIS (Bank for International Settlement) which acts as the central bank of central banks of which RBI is also a member.
The purpose of the accord is to ensure that financial institutions have enough capital on account to meet obligations and absorb unexpected losses.
Basel I (1998): Focused on credit risk.
Basel II (2004): Capital Adequacy requirements.
Basel III (2010): Introduced in response to the financial crisis of 2008. aim to promote a more resilient banking system by focusing on four vital banking parameters viz. capital, leverage, funding and liquidity.
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