what is the minimum capital adequacy under basel ii 
under basell ii banks are required to maintain a capital reserve tier 1 2 3 equal to at least 8 of their risk weighted assets 10the bottom linebanking regulations known as the basel accords require banks to hold different types of capital on hand and certain percentages of each having these types of liquid assets or cash balances out the risk weighted assets that banks hold and increases the stability of the financial system tier 2 capital is the supplementary capital held in reserve by a bank it is less reliable than tier 1 capital because it s composed of assets that are difficult to liquidate and it s more difficult to measure accurately 