Basel II Implementation Quiz

Banks must maintain the highest level of capital at all times

Banks must solely rely on external assessments for capital adequacy

Banks must have a process for assessing overall capital adequacy in relation to their risk profile (correct)

Banks must eliminate all risks from their business operations

External auditors

Shareholders

Board of Directors (correct)

Regulatory authorities

To encourage banks to operate without any capital

To discourage banks from using risk management techniques

To eliminate all risks from banks' business operations

To ensure banks have adequate capital to support all the risks in their business (correct)

<p>Bank management</p> Signup and view all the answers

<p>To encourage banks to develop and use better risk management techniques</p> Signup and view all the answers