Lesson 2 of 5
The Basel Committee: capital, liquidity and the Core Principles for banking supervision
The Basel Committee writes the standards that decide how much capital a bank holds against its loans, how much liquidity it keeps for a bad month, and what a good banking supervisor does. This lesson explains where the committee came from, how the capital ratio and risk weights work, with a worked example for a retail loan book, the two liquidity ratios, the Core Principles, and how far markets outside the committee follow its standards.
Published 17 October 2026 · Listen to this lesson
In this lesson
- Where the committee came from
- The capital ratio
- Risk weights for retail loans, with a worked example
- Liquidity: surviving a month and funding a year
- The Core Principles: what good supervision looks like
- Members, everyone else, and how to check