Answer: forces banks with greater risk to maintain more capital.
Explanation:
The Basel Accord are a set of regulations in the banking industry that enables the proper functioning of banks, if these regulations for banks are strictly adhered to, banks would rarely have problems of total failure which leads to the bank closing up.
The Basel Accord is named after the city of Basel in Switzerland where the meetings took place, the Accord majored on the minimum financial requirements of banks.
