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Basel Committee On Banking Supervision

Basel Committee on Banking Supervision

Definition

A commission established in 1988 to develop a risk-based standard for the amount of capital held by banks. The original formula calls for banks to hold 8 percent of capital against credit risk on a weighted basis with 100 percent of weighting (the entire 8 percent) for most loans. The commission is headquartered in Switzerland and is composed of representatives from bank supervisory authorities and central banks from Europe, Scandinavia, the United Kingdom, and the United States.

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