Presented By: Vinod Panigrahi Rupesh Mahyavanshi

Presented to : Ashwin Sir

Basel
Basel committee on Banking supervision (BCBS) Established in 1975 in Basel, Switzerland.

Published a set of minimum capital requirements for banks.

Basel I
Basel I also known as the 1988 Basel Accord. It was enforced by law in the group of Ten(G10) Countries in 1992. To discuss a formal standard to ensure the proper capitalization of internationally active banks.

Basel II
Basel II is the second of the Basel Accords. Published in June 2004 Which recommendations on banking Laws And Regulations. Basel II is a Voluntary agreement between the banking Authorities of the Major developed Countries.

Need of Basel II
Much Better Capital Framework was required than Basel I. Banking Has become too complex to be addressed by Basel I simplistic Approach. Basel I does not reflect credit quality Gradation in asset quality. Basel I had too little risk-sensivity & it did not give bankers, Supervisors, or the Marketplace, Meaningful measures of risk.

Pillers of Basel II
Minimum Capital Requirements Supervisory Review Market Discipline

The Third Piller

Compliment the MCR& SRP BY developing a Set of disclosure Requirements Such disclosure Required to be made At least twice in year except Qualitative Disclosure

Issues And Challenges

Capital Requirement Profitability Rating Requirements Supervisory frameworks Corporate Governance Issues Disadvantages for Smaller Banks