Which of the following was not part of the Basle Agreement?
A)Bank's required capital was linked to its composition of assets.
B)Banks are required to operate with a minimum level of equity.
C)The ownership of equity by banks was prohibited.
D)Capital requirements across countries were standardized.
E)The minimum total capital requirements were set to 8% of risk-adjusted assets.

Question

Quizplus · Accepted Answer

The Basle Agreement did not prohibit the ownership of equity by banks. In fact, it required banks to maintain a minimum level of equity to ensure they had enough of a cushion to absorb losses. The other options (A, B, D, and E) were all part of the Basle Agreement.

Which of the Following Was Not Part of the Basle