*Discuss the regulation of the financial sector. You may focus on one or more of the...

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Finance

*Discuss the regulation of the financial sector. You may focuson one or more of the Basel banking accords. You may focus onsignificant present or past legislation of the financial sector,with particular emphasis on United States legislation. You mayfocus on the putative regulation or legislation of selectedinstitutions or parts of the financial sector in a moderneconomy

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BASEL ACCORDS The Basel Accords are three series of banking regulations Basel I II and III set by the Basel Committee on Bank Supervision BCBS which provides recommendations on banking regulations in regards to capital risk market risk and operational risk The purpose of the accords is to ensure that financial institutions have enough capital on account to meet obligations and absorb unexpected losses Basel I The first Basel Accord known as Basel I was issued in 1988 and focuses on the capital adequacy of financial institutions The capital adequacy risk the risk that a financial institution will be hurt by an unexpected loss categorizes the assets of financial institutions into five risk categories 0 10 20 50 and 100 Under Basel I banks that operate internationally are required to have a risk weight of 8 or less Basel II The second Basel Accord called Revised Capital Framework but better known as Basel II See Answer

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