Understand how Basel norms shape bank risk management and why they matter for FRM candidates and risk professionals.

To understand what is FRM in practice, it helps to understand the rules banks must follow.

What are Basel norms?

The Basel Committee on Banking Supervision publishes international standards for bank capital, liquidity and risk management. National regulators, such as the RBI in India, adopt and adapt them .

Why they matter

They set minimum capital banks must hold against risks, push banks to measure risk consistently and promote stability.

Key themes

1. Capital adequacy: banks hold capital to absorb losses.
2. Risk-weighted assets: capital depends on how risky exposures are.
3. Liquidity standards: banks must hold enough liquid assets.
4. Supervision and disclosure: regulators review risk practices and banks publish information.

Links to FRM topics

Market, credit, operational and liquidity risk each connect to regulatory frameworks. The FRM course includes regulatory context .

Careers

Regulatory reporting, capital planning, stress testing and compliance roles all use these concepts.

How to study

Focus on why each rule exists, not just the numbers.

TWSS guidance

TWSS can guide your learning path 

Curious about regulation careers? Talk to a TWSS counsellor.