SEMESTER SPRING 2021

CREDIT & RISK MANAGEMENT

(FIN625)

Assignment – 2
Total Marks: 10 Due Date: August 03, 2021

Topic: BASEL Committee on Banking Supervision

The banking industry is highly regulated. On a country level, this industry is regulated by the
Central Bank. However, internationally this industry is regulated by Bank for International
Settlements (BIS). BIS was established in 1930. The purpose behind establishing this institution
is to conduct research and examine problems linked to financial stability. From its establishment
until now, BIS played various roles in stabilizing the worldwide economy. BIS comprises
numerous committees, one of its committees is “BASEL Committee on Banking Supervision”. So
far, this committee has issued three accords, namely BASEL I, BASEL II, and BASEL III for
banking supervision. The first accord is recognized as BASEL I. It was formulated in 1988. After
that, the committee proposed numerous changes, and the second accord was issued in 2006, known
as BASEL II. Due to the consequences of financial crises in 2007, the committee again proposed
many changes in BASEL II. Finally, the latest accord was issued in 2013, known as BASEL III.

Required:

You are required to read the above-provided information and answer the following questions
carefully.

1. Enlist the different types of shortcomings in BASEL II in contrast to BASEL III.

(Marks 2.5)

2. Describe in detail those shortcomings in BASEL II that forced the Bank for International
Settlements to introduce BASEL III. (Marks 7.5)

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IMPORTANT

24 hours extra/grace period after the due date is usually available to overcome uploading
difficulties. This extra time should only be used to meet emergencies, and above mentioned
due dates should always be treated as final to avoid any inconvenience.

OTHER INSTRUCTIONS
DEADLINE

• Make sure to upload the solution file before the due date on VULMS.

• Any submission made via email after the due date will not be accepted.

FORMATTING GUIDELINES
• Use the font style “Times New Roman” or “Arial” and font size “12”.

• It is advised to compose your document in MS Word format.

• You may also compose your assignment in Open Office format.

• Use black and blue font colors only.

REFERENCING GUIDELINES
• Use APA style for referencing and citation. For guidance, search “APA reference style”
in Google and read various websites containing information for better understanding or
visit:

http://linguistics.byu.edu/faculty/henrichsenl/apa/APA01.html

RULES FOR MARKING

Please note that your assignment will not be accepted and marked ZERO, if:

• It is submitted after the due date.

• The file you uploaded does not open or is corrupt.

• It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint, PDF, etc.

• It is cheated or copied from other students, t h e internet, books, journals, etc.

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 Note related to load shedding: Please be proactive

Dear Students!
As you know that post-Mid-Term semester activities have been started and the load
shedding problem is also prevailing in our country nowadays. Keeping in view the fact,
you all are advised to post your activities as early as possible without waiting for the due
date. For your convenience, the activity schedule has already been uploaded on VULMS
for the current semester. Therefore no excuse will be entertained after the due date of
assignments, quizzes, or GDBs.