There Are Three Pillars of Basel II

question 56

Multiple Choice

There are three pillars of Basel II.One of them is to make market discipline a powerful force compelling risky banks to lower their risk exposure.What does Basel II want to do to make this happen?

• A)Require minimum capital requirement based on the bank's own evaluation of its risk.
• B)Require greater public disclosure of each bank's true financial condition.
• C)Expand the risks to be evaluated to include credit risk market risk,and operational risk.
• D)Require a supervisory review of each bank's risk evaluation procedures.
• E)All of the options are correct.

---

Definitions:

Communication

The exchange of information, thoughts, or messages between people through speaking, writing, or other mediums, crucial for social interaction.

Hold Onto Sanity

A phrase emphasizing the importance of maintaining mental and emotional stability, especially in challenging circumstances.

Gestalt Approach

A psychotherapy method focusing on the present moment and personal responsibility to facilitate self-awareness and resolve unfinished issues.

Cognitive Therapy

A subtype of cognitive-behavioral therapy that focuses on changing negative patterns of thought to improve emotional well-being and behaviors.