Practice Question Set: Basel II: international Convergence

This practice question set consists of 38 pages reviewing the concepts of:

* The key elements of the three pillars of Basel II: minimum capital requirements, supervisory review and market
discipline
* The major elements of the three options available for the calculation of credit risk: Standardised Approach, Foundation IRB Approach and Advanced IRB Approach
* The major elements of the three options available for the calculation of operational risk: Basic
Indicator Approach, Standardised Approach and Advanced Measurement Approach
* The major elements of the two options available for the calculation of market risk: Standardised Measurement Method and Internal Models Approach
* Define in the context of Basel II and calculate where appropriate: Capital ratio, Capital charge, Tier 1 capital, Tier 2 capital, Tier 3 capital, Probability of default (PD), Loss given default (LGD), Exposure at default (EAD), Maturity (M), Stress tests, Concentration risk Residual risk

We have also provided individual links for each question to their respective forum discussion.

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