Assignment:
It is important to examine the Basel Accords more closely. Use readings, research, and lecture notes to complete the assignment below.
For this assignment, you will develop a 2 to 3 page paper and summarize the Basel Accords (both I and II).
1. Be sure to explain the purpose of Basel.
2. Why and how do these adjustments affect banks?
3. Can the approaches of Basel III "reduce the risk of system wide shocks" (stress testing)?