Basel II attempts to encourage market discipline by having banks disclose capital structure, risk exposures, and capital adequacy in a systematic manner.

Question

Quizplus · Accepted Answer

This statement is true. Basel II aims to promote market discipline by requiring banks to disclose their capital structure, risk exposures, and capital adequacy in a transparent and standardized way. This allows market participants to better understand the risks undertaken by banks and make more informed decisions about their investments or lending activities.

Basel II Attempts to Encourage Market Discipline by Having Banks