Under the international capital (Basel)agreement,Tier 2 capital must be raised to a minimum of 4 percent of risk-weighted assets.

Question

Quizplus · Accepted Answer

Under the Basel III international regulatory framework, Tier 2 capital does not have a specific minimum requirement on its own. Instead, the total capital ratio, which includes both Tier 1 and Tier 2 capital, must be at least 8% of risk-weighted assets, with Tier 1 capital needing to be at least 6% of risk-weighted assets.

Under the International Capital (Basel)agreement,Tier 2 Capital Must Be Raised