How has Basel II affected the capital charge of a loan to another bank and a loan to a large MNC?
What will be an ideal response?
Answer: Under Basel I, claims on other banks receive only a 20% weighting, meaning that only 20% of the claim is counted against the 8% capital requirement. Some claims receive a 50% weighting, but virtually all claims on the non-bank private sector receive a 100% weight and hence the full capital charge. Hence, the charge for the loan to the MNC would be larger. Under Basel II, other risks are taken into account (market risk and operational risk), and credit risk is measured differently, primarily to better reflect the true creditworthiness of the borrower. Consequently, it is conceivable that the capital charge for the bank loan is larger than for the MNC under Basel II.
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A suspect can assert his Fifth Amendment privilege even after he is given a grant of immunity
Indicate whether the statement is true or false
Jackie went to purchase a sweater at Chic Ltd. and there were two price tags on the sweater, one listed the price as $60 and the other tag listed the price as $40
When Jackie went to pay for the sweater the sales clerk said the sweater was $60 and that someone must have made a mistake putting the second wrong price tag on the sweater. As a result A) Chic is guilty of double ticketing B) Chic is guilty of an offence under the criminal matters under the Competition Act C) Chic is guilty of an offence under the civil reviewable matters section of the Competition Act D) All of the above E) Jackie has to pay $60 if she wants the sweater as it is an honest mistake