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Basel II accord is mostly concerned with :

  • A.Central Vigilance Commission
  • B.Non-performing Assets
  • C.Capital Adequacy Ratio
  • D.Foreign Direct Investment

Answer: C

Basel II is mostly concerned with the capital adequacy ratio.

The Basel II accord, issued by the Basel Committee on Banking Supervision in 2004, revised the rules on how much capital banks must hold against their risks. Its three pillars are minimum capital requirements (covering credit, market and operational risk, with capital of at least 8 per cent of risk-weighted assets), supervisory review, and market discipline through disclosure.

Non-performing assets are dealt with by income recognition and provisioning norms, which affect capital but are not the subject of the accord. The Central Vigilance Commission is an Indian anti-corruption body, and foreign direct investment is governed by investment policy, so neither is related to Basel II.

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