Under the terms of the Basle Agreement banks in countries covered by this agreement must hold a total capital to total risk-weighted assets and other related risk-exposed items of:

Question

Quizplus · Accepted Answer

The Basle Agreement, specifically the Basel I Accord established in 1988, requires banks to hold a minimum capital adequacy ratio of 8 percent of risk-weighted assets. This standard was set to ensure that banks have enough capital on hand to absorb a reasonable amount of loss, thereby reducing the risk of insolvency.

Under the Terms of the Basle Agreement Banks in Countries