Basel II relates to which one of the following?
- AInternational standards for safety in civil aviation
- Bmeasures against cyber crimes
- CMeasures against drug abuse by sportspersons
- Dinternational standards for measuring the adequacy of a bank’s capitalCorrect
Explanation
The Basel Accords are a series of international banking regulations issued by the Basel Committee on Banking Supervision. Basel II, introduced in 2004, specifically focuses on ensuring that financial institutions maintain enough cash reserves to cover risks and remain solvent. It is built on three main pillars: minimum capital requirements, supervisory review, and market discipline. The primary goal is to create a global standard for bank capital adequacy to strengthen the stability of the international financial system. Therefore, it relates directly to international standards for measuring a bank's capital.
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