20-46 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

Basel II does indeed aim to encourage market discipline by promoting greater transparency and disclosure of banks' capital structure, risk exposures, and capital adequacy through a systematic framework. This is intended to improve market participants' ability to assess the risk profile of individual banks and make informed investment decisions, thereby promoting greater stability and efficiency in the financial system overall.

20-46 Basel II Attempts to Encourage Market Discipline by Having