The original Basel Accord was:
A) the basic set of guidelines the Federal Reserve applies in regulating domestic banks.
B) a set of guidelines for basic capital requirements for internationally active banks.
C) an agreement between state and federal regulators to try to have one standard set of guidelines for all banks.
D) a set of guidelines applied only to international banks operating with U.S. boundaries.

Question

Quizplus · Accepted Answer

The original Basel Accord, also known as Basel I, was a set of guidelines for basic capital requirements for internationally active banks. It was developed by the Basel Committee on Banking Supervision in 1988 and was implemented in countries around the world. Its purpose was to ensure that banks had sufficient capital to cover their risks and absorb potential losses.

The Original Basel Accord Was