![](/template/termwiki/images/likesmall.jpg)
Home > Terms > Armenian (HY) > Բազել 1 և 2
Բազել 1 և 2
An attempt to reduce the number of bank failures by tying a bank's capital adequacy ratio to the riskiness of the loans it makes. For instance, there is less chance of a loan to a government going bad than a loan to, say, an internet business, so the bank should not have to hold as much capital in reserve against the first loan as against the second. The first attempt to do this worldwide was by the Basel committee for international banking supervision in 1988. However, its system of judging the relative riskiness of different loans was crude. For instance, it penalized banks no more for making loans to a fly-by-night software company in Thailand than to Microsoft; no more for loans to South Korea, bailed out by the IMF in 1998, than to Switzerland. In 1998, "Basel 2" was proposed, using much more sophisticated risk classifications. However, controversy over these new classifications, and the cost to banks of administering the new approach, led to the introduction of Basel 2 being delayed until (at least) 2005.
- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Economy
- Category: Economics
- Company: The Economist
- Product:
- Acronym-Abbreviation:
Other Languages:
Member comments
Terms in the News
Featured Terms
Վիկտորիաս Սիքրեթ
A US retailer of premium quality women's fashion wear, lingerie and beauty products. Victoria's Secret is known for its annual fashion runway show, ...
Contributor
Featured blossaries
Browers Terms By Category
- Natural gas(4949)
- Coal(2541)
- Petrol(2335)
- Energy efficiency(1411)
- Nuclear energy(565)
- Energy trade(526)
Energy(14403) Terms
- Nightclub terms(32)
- Bar terms(31)
Bars & nightclubs(63) Terms
- General art history(577)
- Visual arts(575)
- Renaissance(22)
Art history(1174) Terms
- Automobile(10466)
- Motorcycles(899)
- Automotive paint(373)
- Tires(268)
- Vehicle equipment(180)
- Auto parts(166)
Automotive(12576) Terms
- Cardboard boxes(1)
- Wrapping paper(1)