In Addition to Establishing Minimum Capital Requirements, Basel II Proposed

question 46

True/False

In addition to establishing minimum capital requirements, Basel II proposed procedures to ensure that sound internal process are used to assess capital adequacy and to set targets that are commensurate with the risk profile and environment.

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Definitions:

Forbearance

The act of refraining from exercising a legal right, especially by a creditor who gives the debtor more time to pay an outstanding debt.

Promissory Estoppel

A legal principle that prevents a promisor from reneging on a promise when the promisee has relied on that promise to their detriment.

Consideration

In contract law, consideration refers to something of value exchanged between parties, which is necessary for a contract to be legally binding.

Legal Detriment

A loss or disadvantage that occurs as a result of a contract or agreement, serving as consideration for a promise in contract law.