Basel II Accord

The Basel II Accord is an agreement made by central banks from around the world to set standards for how banks manage the money they hold. Banks need to manage their money carefully so that they do not run out or make bad investments. The Basel II Accord sets rules and standards that banks must follow to make sure their money is safe. The rules include things like how much money banks must keep in reserve for emergencies and how banks must measure and report their risks. The Basel II Accord is important because it helps protect customers from losing their money if a bank fails.