BASEL NORMS: The birth of the Basel banking norms is attributed to the incorporation of the Basel Committee on Banking Supervision (BCBS), established by the central bank of the G-10 countries in 1974. This came into being under the patronage of Bank for International Settlements (BIS), Basel, Switzerland. The Committee formulates guidelines and provides recommendations on banking regulation based on capital risk, market risk and operational risk. The Committee was formed in response to the chaotic liquidation of Herstatt Bank, based in Cologne, Germany in 1974.
Basel I: In 1988, BCBS introduced capital measurement system called Basel capital accord, also called as Basel I. It focused almost entirely on credit risk. It defined capital and structure of risk weights for banks. The minimum capital requirement was fixed at 8% of risk weighted assets (RWA). RWA means assets with different risk profiles. Apart from focusing on the credit risk, the committee also issued Market Risk Amendment to the capital accord in January 1996, which came into effect at the end of 1997. The reason for such an amendment arose from banks' market risk exposures to foreign exchange, debt securities, equities, commodities and options.
Features of Basel I: The Basel I Accord attempted to create a cushion against credit risk. The norm comprised of four pillars, namely Constituents of Capital, Risk Weighting, Target Standard Ratio, and Transitional and Implementing Arrangements.
Basel II: Basel II was fundamentally conceived as a result of two triggers – the banking crises of the 1990s on the one hand, and the criticisms of Basel I itself on the other. In the year 1999, the Basel Committee proposed a new, far more thorough capital adequacy accord. Formally, the accord was known as A Revised Framework on International Convergence of Capital Measurement and Capital Standards (hereinafter referred to as Basel II). The new framework was designed to improve the way regulatory capital requirements reflect the underlying risks for addressing the recent financial innovation. Also, this framework focuses on the continuous improvements in risk measurement and control. For successful implementation of the new capital framework across borders, the committee's Supervision and Implementation Group (SIG) communicates with the supervisors outside the committee's membership through its contacts with regional associations. The new framework neatly retained the 'pillar' framework of basel 1, yet crucially expanded the scope and specifies of Basel I.
Basel II aimed to measure the risk-weighted (RWAs) of a bank more carefully. This revised framework placed forth three methodologies to determine the risk rating of a bank's assets- the Standardised Approach and two Internal Ratings Based Approaches.
Basel III: Basel II indeced had its share of criticism. To begin with, the Basel Committee declared that the committee's recommendations were for G-10 member states. This leaves out emerging economies, andoanks might not be stringent enough in regulating private banks, thus letting them raise their exposure - defeating the entire purpose. The issues surrounding Basel II together contributed to emergence of the Basel II accord. The essence of Basel III revolves around two sets of compliance:
While good quality of capital will ensure stable long-term sustenance, compliance with liquidity covers will increase ability to withstand short-term economic and financial stress.
It was a good experience with Abhyas Academy. I even faced problems in starting but slowly and steadily overcomed. Especially reasoning classes helped me a lot.
In terms of methodology I want to say that institute provides expert guidence and results oriented monitering supplements by requsite study material along with regular tests which help the students to improve their education skills.The techniques of providing education helps the students to asses...
Abhyas is an institute of high repute. Yogansh has taken admission last year. It creates abilities in child to prepare for competitive exams. Students are motivated by living prizes on basis of performance in Abhyas exams. He is satisfied with institute.
My experience with Abhyas Academy has been very good. When I was not in Abhyas whenever teacher ask questions I could not speak it confidently but when I came in Abhyas, my speaking skills developed and now I am the first one to give the answer of teachers question.
My experience with Abhyas academy is very nice or it can be said wonderful. I have been studying here from seven class. I have been completing my journey of three years. I am tinking that I should join Abhyas Academy in tenth class as I am seeing much improvement in Maths and English
It has a great methodology. Students here can get analysis to their test quickly.We can learn easily through PPTs and the testing methods are good. We know that where we have to practice
Third consective year,my ward is in Abhyas with nice experience of admin and transport support.Educational standard of the institute recumbent at satisfactory level. One thing would live to bring in notice that last year study books was distributed after half of the session was over,though study ...
Abhyas institute is one of the best coaching institute in the vicinity of Ambala Cantt area. The teachers of the institute are well experienced and very helpful in solving the problems of the students.The good thing of the institute is that it is providing extra classes for the students who are w...
Abhyas academy is great place to learn. I have learnt a lot here they have finished my fear of not answering.It has created a habit of self studying in me.The teachers here are very supportive and helpful. Earlier my maths and science was good but now it has been much better than before.
My experience with Abhyas is very good. I have learnt many things here like vedic maths and reasoning also. Teachers here first take our doubts and then there are assignments to verify our weak points.
One of the best institutes to develope a child interest in studies.Provides SST and English knowledge also unlike other institutes. Teachers are co operative and friendly online tests andPPT develope practical knowledge also.
The experience was nice. I studied here for three years and saw a tremendous change in myself. I started liking subjects like English and SST which earlier I ran from. Extra knowledge gave me confidence to overcome competitive exams. One of the best institutes for secondary education.
Being a parent, I saw my daughter improvement in her studies by seeing a good result in all day to day compititive exam TMO, NSO, IEO etc and as well as studies. I have got a fruitful result from my daughter.
About Abhyas metholodology the teachers are very nice and hardworking toward students.The Centre Head Mrs Anu Sethi is also a brilliant teacher.Abhyas has taught me how to overcome problems and has always taken my doubts and suppoeted me.
We started with lot of hope that Abhyas will help in better understnding of complex topics of highers classes. we are not disappointed with the progress our child has made after attending Abhyas. Though need to mention that we expected a lot more. On a scale of 1-10, we would give may be 7.
My experience with Abhyas academy is very good. I did not think that my every subject coming here will be so strong. The main thing is that the online tests had made me learn here more things.
It was good as the experience because as we had come here we had been improved in a such envirnment created here.Extra is taught which is beneficial for future.
My experience was very good with Abhyas academy. I am studying here from 6th class and I am satisfied by its results in my life. I improved a lot here ahead of school syllabus.
Abhyas Methodology is very good. It is based on according to student and each child manages accordingly to its properly. Methodology has improved the abilities of students to shine them in future.
I have spent a wonderful time in Abhyas academy. It has made my reasoning more apt, English more stronger and Maths an interesting subject for me. It has given me a habbit of self studying