Question

1. [10 points in total] Some global efforts have led to the creation of international rules for bank supervision. [References: Textbook and Internet research] A. [1 point] What is the key organization that has led these efforts, which resulted in the adoption, by several nations, of the approach to the calculation of risk-weighted assets and risk-weighted capital ratio for banks? B. [1 point] Where is the above organization located? C. [1 point] What is the name of the official document which contains the rules for calculating these risk-adjusted assets and capital ratio? D. [4 points] What are the current major asset categories and associated weights for risk calculation purposes? E. [3 points] Outline the key provisions of the latest framework, which was put forth in aftermath of the recent global financial crisis that began around 2007.

Answer 1

PINO Answers DA) what Basel committe calculating is key organization: 1 is put fourth by the Basel on Bank Supeymision (BCBS) for risk - weighted assets and capital ratio. located above organization www 1. The organization is located in Switzerland - c) what is the name of which contains the rules -adjusted assets and the official document for calculating risk capital Yatio ? of is. the official document Name Boser

pg No@ D Current Major Assistant weights for Risk cash, central bank, Government debt o.li 20.1, Development Bank debt, OECD Bank debt) OECD securities Pirm debt Non-OECD Bank debt Resedential Mortagages 50/- private sector Non-OECD bank debt, debt (Maturity more than one year) 100.1 Real Estate plant and Equipment and capital requirement