Finance - BIS Capital Adequacy Essay Example | Topics and Well Written Essays - 500 words

Finance - BIS Capital Adequacy - Essay Example Among its more important committees is the Basel Committee which is responsible for the promulgation of banking regulation guidelines concerning supervisory issues. In this regard, Basel I (1988 Accord) was a landmark in the banking industry in that banks having an international presence are required to hold as a minimum 8% of their capital equal to the risk weighted assets (there are five risk weightings). Basel II, which came in June 2004, addressed some of the weaknesses from Basel I. Both accords, however, are designed to strengthen the financial banking system by requiring a more rigorous set of capital requirements for banks to meet their credit and capital risks. Furthermore, Basel II is more forward-looking by requiring banks to identify those risks now and in the future especially with the sudden surge in hedge funds and esoteric investment instruments such as credit default swaps and other derivatives. Basel II attempts to avoid systemic risks such as what happened in the U S subprime mortgage crisis which engulfed the entire banking system with spectacular collapses such as AIG. Basel II is also more comprehensive by requiring banks to maintain enough capital to certain risks by quantifying credit and operational risks. A bank that engages in more risky investments is required to maintain a higher capital adequacy ratio to remain solvent in case of a crisis. Other considerations are a banks residual risks and the mandatory disclosures to comply with international accounting rules and standards. This last provision is crucial as it gives counter-parties an idea of the risks they face when dealing with a certain international bank. This way, there are no ticking time bombs like CDS which Mr. Warren Buffett likens to weapons of mass destruction (Graham & Dodd 2008, p. 622) due to unregulated credit default swaps that

Schools Sporting Day Memoir Essay Example | Topics and Well Written Essays - 750 words

Schools Sporting Day Memoir - Essay Example   In a Schools’ Sporting Day that I witnessed in summer, various events took place. Our group converged at the field by 9 am and a welcoming note was given by the school’s representative. Since we were a large group, the team had to separate into five groups to compete against each other the various sporting activities for the day. It was in summer and so the sunny weather was comfortable for the event. A compeer took the mandate of controlling the tournament from the begging to the end following set rules and regulations. As such, the compeer read and explained the rules governing the event and spelled out disciplinary measures against any violators. He also delegated the powers to record resultant scores to three assistants for purposes of establishing the winners. We said a word if prayer put on the sporting attire, and started the warm up for the event. After 15 minutes of light exercises, we were ready for a challenging yet exciting sporting day. To improve the l evel of participation in the tournament, we chose to run all the sporting activities as relay races. Moreover, to incorporate the abilities and skills of every participant, the event had a wide range of challenges where one would score points on skill, participation, and teamwork. Classic races were the kick starters of the event and included welly waging, three legged dashes, relay race, egg & spoon race, wheelbarrow race, bean bag on the head, space hopper race, sack race, skipping race, and obstacle course.