The 1988 Basel Accord is:
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 1988 Basel Accord, also known as Basel I, is a set of guidelines for minimum capital requirements for internationally active banks. It was developed by the Basel Committee on Banking Supervision, which is composed of central banks and bank regulators from around the world. The accord aimed to ensure that banks hold enough capital to absorb losses and reduce the risk of bank failures.

The 1988 Basel Accord Is