Economics • Banking & FinanceMedium
What does the term 'Basel Norms' refer to in international banking?
A. Accounting standards for computing corporate tax liabilities across borders
B. International regulatory framework for bank capital adequacy, stress testing, and market liquidity risk✓ Correct Answer
C. Guidelines for setting minimum wage rates in developing economies
D. Protocols governing sovereign debt restructuring and bailout packages
💡 Solution & Explanation
The Basel Accords are international regulatory frameworks issued by the Basel Committee on Banking Supervision to ensure global financial stability through adequate bank capital adequacy, stress testing, and market liquidity risk standards. They do not dictate corporate accounting standards or minimum wages. These norms are frequently tested in banking awareness modules.
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