This presentation provides a basic overview of the Basel agreements. It summarizes the objectives and key aspects of Basel I, which was adopted in 1988, and Basel II, adopted in 2006. Basel I established international standards for capital adequacy and risk management but had shortcomings in risk sensitivity. Basel II aimed to create a more comprehensive framework for credit, market and operational risk and encourage rigorous bank supervision and risk management. The presentation concludes by noting the adoption of Basel II in the EU and flags the subprime crisis as a point for further thinking.

1. Schönen Guten Tag

2. Presentation Topic:Basic Understanding of Basel AgreementsCourse: Finandamentalsof Financial Management WS 09/10CourseInstructer: Prof. Dr. GrunerPresenationBy:Mehar Muhammad AshfaqDate: November 24, 2009Coburg University of Applied Sciences-Germany

3. Basic Understanding of Basel Agreements ThrustofPresentationHistorical Aspects

4. Basel I:

5. Overview

6. Short-Comings

7. Achievements

8. ´Basel II:

9. Overview

10. Objectivesof Basel II

11. DifferenceBetween Basel I & Basel II.

12. SummaryWhatis Basel……….?4Mehar Muhammad Ashfaq

13. Overview on Basel Committee Founded in 1974By Central Bank Governors of G10 (Belgium, Canada, France, Germany, Italy, Japan, Luxemburg, Netherlands, Spain, Sweden, Switzerland, UK, US)Focus: Banking SupervisionObjectives:Adequate SupervisionNo Internationally Active Bank Should EscapeSupervisionMeets 4 Times a YearAround 30 Working Groups / Task ForcesLocation of Secretariat: Basel, Switzerland5Mehar Muhammad Ashfaq

14. Basel I – 1988 Agreement6Mehar Muhammad Ashfaq