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Overview:
One of the principal objectives of supervision is to alienate depositors from the financial risks of the bank. In today's volatile markets, it is imperative to ensure that capital set aside for capital adequacy measures is readily available for depositors in adverse market conditions. Basel II has largely left unchanged the question of how to actually define bank capital, which diverges from accounting equity in important respects. The definition, as modified up to the present, remains in place. Basel II uses a "Three pillars" concept to promote greater stability in the financial system.
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| Format: | Size: | 74 KB | |
| Date: | Jan 2009 | ||
| Pages: | 4 |
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