Compliance of Minimum Capital Requirement (BASELII Pillar-1) : A Study on Some Selected Public, Private and Foreign Banks of Bangladesh

The Basel Committee on Banking Regulation and Supervisory Practices devoted significant resources and considerable attention to the development of the capital adequacy framework for internationally active banks, known as the Basel Accord. The primary purpose of the Capital Accord was to make regulatory capital requirements more responsive to the credit risk associated with a bank's portfolio of assets and off-balance sheet activities. The study has made an attempt to find out whether banks in Bangladesh are maintaining the minimum capital requirements (MCR). A random sampling of some State owned bank, Private commercial Bank and Foreign bank has taken as testing model being employed to measure the impact of capital requirements. The result shows that the minimum capital requirement to comply with Basel II has been maintained