Free Annual Reports
DEFINITION of 'Basel II'
A set of banking regulations put forth by the Basel Committee on Bank Supervision, which regulates finance and banking internationally. Basel II attempts to integrate Basel capital standards with national regulations, by setting the minimum capital requirements of financial institutions with the goal of ensuring institution liquidity.
Next Up
BREAKING DOWN 'Basel II'
Basel II is the second of the Basel Committee on Bank Supervision's recommendations, and unlike the first accord, Basel I, where focus was mainly on credit risk, the purpose of Basel II was to create standards and regulations on how much capital financial institutions must have put aside. Banks need to put aside capital to reduce the risks associated with its investing and lending practices
RELATED TERMS
-
Basel III
A comprehensive set of reform measures designed to improve the ... -
Advanced Internal Rating-Based ...
An approach that requests that all risk components be calculated ... -
Basel Committee On Bank Supervision
A committee established by the central bank governors of the ... -
Bank For International Settlements ...
An international organization fostering the cooperation of central ... -
Capital Adequacy Ratio - CAR
A measure of a bank's capital. It is expressed as a percentage ... -
European Central Bank - ECB
The central bank responsible for the monetary system of the European ...
Related Articles
-
Personal FinanceUsing Economic Capital To Determine Risk
Discover how banks and financial institutions use economic capital to enhance risk management. -
Personal FinanceWhat Is International Trade?
Everyone's talking about globalization, so we explain what is it and why some oppose it. -
InsuranceWhat Is The World Bank?
You've heard of the World Bank, now find out how it functions and why some groups oppose it. -
Personal Finance
Understanding The Basel III International Regulations
The Basel III regulations mark a drastic reform in international banking. But how do they impact the future's investment landscape? -
Fundamental AnalysisAn Introduction To The International Monetary Fund (IMF)
Chances are you've heard of the IMF. But what does it do, and why is it so controversial? -
Personal FinanceIs Your Bank On Its Way Down?
Find out how the Tier 1 capital ratio can be used to tell if your bank is going under. -
Active TradingThe Advantage Of Intermarket Analysis
Analyzing a variety of markets around the world can provide powerful insight into trading opportunities. -
InsuranceBasel II Accord To Guard Against Financial Shocks
Problems with the original accord became evident during the subprime crisis in 2007. -
Personal FinanceWhat Is The Bank For International Settlements?
Get the scoop on the structure and functions of the oldest global financial institution. -
Mutual Funds & ETFs5 Reasons to Choose Mutual Funds over ETFs
Discover five reasons to choose mutual funds over ETFs, such as the wide variety of funds available, the higher service quality and the lack of commission fees.
RELATED FAQS
-
What do regulators think of Value at Risk (VaR)?
Most regulators across the world consider value at risk, or VaR, to be an effective internal model of financial risk, and ... Read Full Answer >> -
What does it mean when a company has a high capital adequacy ratio?
The capital adequacy ratio, also known as capital to risk-weighted assets ratio, measures a bank's financial strength by ... Read Full Answer >> -
What is the difference between a global fund and an international fund?
In the English language, "global" and "international" tend to be used interchangeably - hence the confusion in the investing ... Read Full Answer >> -
What risks do organizations face when engaging in international finance activities?
When an organization decides to engage in international financing activities, they also take on additional risk as well as ... Read Full Answer >> -
Does the FDIC cover credit unions?
The Federal Deposit Insurance Corporation (FDIC) does not cover credit unions. The FDIC only insures deposits in banks and ... Read Full Answer >> -
Which mutual funds made money in 2008?
Out of the 2,800 mutual funds that Morningstar, Inc., the leading provider of independent investment research in North America, ... Read Full Answer >>