Resources for Basel II Capital Accord (Basel II)

Financial Stability through Sound Risk Management

www.forexhound.com

Financial system stability is the capacity of the financial system to do its job under a wide range of circumstances. This is critical to the economic well-being of the country, because the financial system provides the channels through which savings become investments, money and financial claims are transferred and settled, and risk is allocated to those most willing and able to bear it. For the financial system to function properly, households and firms must have confidence in it, and investors must know what they are investing in and what risk they are assuming.

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