Economics • Banking & FinanceEasy
What does the term 'Basel III' primarily regulate in the global banking sector?
A. International trade tariffs and customs procedures
B. Bank capital adequacy, stress testing, and market liquidity risk requirements✓ Correct Answer
C. Cryptocurrency exchange licensing and cybersecurity standards
D. Foreign direct investment caps in emerging economies
💡 Solution & Explanation
Basel III is a comprehensive set of reform measures developed by the Basel Committee on Banking Supervision to strengthen the regulation, supervision, and risk management of the banking sector by focusing on capital adequacy, stress testing, and market liquidity risk. These international standards were introduced in response to the deficiencies revealed by the 2008 global financial crisis.
More Economics Banking & Finance questions
- Which institution acts as the central counterparty for clearing and settling trades in government securities,…
- Examine the structure of priority sector lending norms mandated for commercial banks in India. Which of the…
- Which of the following financial instruments represents an unsecured money market instrument issued in the…
- What does the term 'Capital Conservation Buffer (CCB)' under Basel III norms require banks to maintain?
- How do District Central Cooperative Banks (DCCBs) function within the rural credit delivery mechanism of…