There are three pillars of Basel II.One of them is to make market discipline a powerful force compelling risky banks to lower their risk exposure.What does Basel II want to do to make this happen?
A)Require minimum capital requirement based on the bank's own evaluation of its risk.
B)Require greater public disclosure of each bank's true financial condition.
C)Expand the risks to be evaluated to include credit risk market risk,and operational risk.
D)Require a supervisory review of each bank's risk evaluation procedures.
E)All of the options are correct.

Question

Quizplus · Accepted Answer

Basel II aims to enhance market discipline by requiring greater public disclosure of each bank's true financial condition, allowing market participants to better assess the risk profile of banks.

There Are Three Pillars of Basel II