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21 October, 2021

What do mean by Basel –I & II? Contract

 What is Contract :

An agreement enforceable by Law is a Contract.

 Essential elements necessary for the formation of a valid contract.

 1.   Offer and Acceptance

2.   Intention to create legal relations

3.   Lawful consideration

4.   Capacity of parties

5.   Free consent

6.   Lawful object

7.   Writing and registration


8.   Certainty

9.   Possibility of performance

10. Not expressly declared void

 

Kinds of Contract :

(01). Valid (02). Voidable (03) Void (04). Unenforceable (05). Illegal

What do mean by Basel –I & II?

Basel is town, situated in Switzerland, where two conferences were held under the supervision of

BIS (Bank for International Settlement) with its 12(twelve) member countries in 1996, for the first time, and in 2004, for the second time which are recognized as Basel-I and Basel-II respectively.

 

Basel-I            :          In this conference capital adequacy for a Bank was fixed at 8% which was re- fixed at 9% in Bangladesh in 2002.

 

Basel-II           :          A framework for Bank Companies was prepared on the basis of three pillars namely (1) Minimum Capital requirement, (2) Supervisory review process and (3) Market discipline. It was also concluded in the conference that three risks would have to be covered by banks as (1) Credit risk (2) Market risk and (3) operational risk.