Several iterations of bank capital standards have been published in recent decades under the guidance of the Basel Committee on Banking Supervision (established under the auspices of the Bank for International Settlements). Starting with what has come to be known as Basel I, these standards have introduced ever-more sophisticated and detailed rules designed to ensure banks hold sufficient high-quality capital and liquid assets and retain access to funding in a crisis.
Key learning objectives:
Explain the basis of the Basel I capital standard
How did Basel II further the work of Basel I?
What new elements did Basel III introduce?
What additional elements did the standards informally known as Basel IV introduce?
03:24
04:22