Basel III banking accord
Question
'Basel III Accord' or simply 'Basel III', often seen in the news, seeks to
Options
develop national strategies for the conservation and sustainable use of biological diversity
improve banking sector's ability to deal with financial and economic stress and improve risk management
reduce the greenhouse gas emissions but places a heavier burden on developed countries
transfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals
Explanation
Basel III is an international regulatory framework designed to strengthen banking sector stability by improving its ability to absorb financial and economic shocks. It increases bank capital requirements, improves risk management, and enhances liquidity standards. Option (a) refers to the Convention on Biological Diversity, option (c) relates to climate change protocols, and option (d) relates to the Montreal Protocol on ozone-depleting substances. > Basel III regulations focus on capital adequacy, liquidity, and leverage ratios to prevent banking crises.
Question details
Year
2015
Paper
GS Paper 1
Question
Q65
Subject
Economy
Sub-topic
Financial regulation and banking
Type
Factual single
Difficulty
Medium
Nature
Current-affairs-linked
Source hint
Financial regulations and international banking standards
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