Basel II & Basel III Regulations

The Basel Committee on Bank Supervision created a set of international banking regulations called Basel. The goal of Basel Regulations is to set minimum capital requirements for international financial institutions in order to minimize credit risk. Basel II imposes risk and capital management rules requiring banks to have sufficient capital to uphold bank stability if they are exposed to greater risk through investment and lending practices.Basel III advises how much capital must be set aside to protect banks from financial risk through strict governance and a heavily enforced risk framework.

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