a) Explain what capital adequacy means.

-Capital adequacy is a ratio of the bank's ability to hold sufficient capital to increase its bank assets through additional loans while maintaining enough equity capital to pay for depositors each time they demand money. The bank records the ratio of equity capital to its financial report. It is expressed as a percentage of assets in terms of equity capital. The capital requirements required by national regulators tend to be modest machine rules rather than applying classy risk models. Businesses have many stakeholders expected to meet their needs, shareholders want high returns, maximize wealth, creditors and society expect risk coverage for potential losses.

b)Then explain how it has been used to try and address risk management of banks.

-Capital adequacy ratio equals banks tier I capital plus banks tier II capital divided by risk-weighted asset. Tier I capital is the capital that can buffer and permanently resolve the losses the bank has suffered without requiring an outage. A good example of a bank's tier I capital is usually its ordinary share capital. Banks tier II capital is low to protect depositors and creditors, as it is to cover losses if the bank collapses. The bank is used to absorb the loss if all the banks tier I capital stage loses capital. When measuring credit exposures, adjust the asset values ??listed in the lender's balance sheet. All loans issued by banks are weighted according to degree of risk.

Shareholders demand on returns of capital invested in banks is very high, therefore ensuring that capital is not unnecessarily high is important. On the other hand, in the case of creditors and society, it is important for banks to maintain sufficient buffer or risk capital to cover potential losses. Therefore, the capital adequacy rules set minimum requirements for the buffer size based on the degree of risk that the bank will bear.

c) Finally, as an opinion, relate if you think this has been helpful through the Basel Accords.

please let me know if you see any error on question a) and b) then please help me with question c).

it worth lots of points so please provide details for the answer. thank you