Basel Norms

Basel Norms are international rules set by the Basel Committee to ensure banks maintain enough healthy capital to cover risks like loans going bad. They promote stability by requiring banks to hold a certain amount of capital (money) based on their assets and risk exposure. This helps prevent bank failures and protects depositors and the broader financial system. The norms include guidelines for measuring risk, calculating capital needs, and maintaining buffers, making banking safer and more resilient worldwide.