Basel Norms

Q.  Which of the following norms intends to strengthen Bank Capital requirements?
- Published on 07 Feb 17

a. Basel II norms
b. Basel III norms
c. Basel I norms
d. Solvency II norms

ANSWER: Basel III norms
 
Basel III or the Third Basel Accord is a global, voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity risk.

The third installment of the Basel Accords (Basel I, Basel II) was developed in response to the deficiencies in financial regulation revealed by the financial crisis of 2007–08.

Basel III is intended to strengthen bank capital requirements by increasing bank liquidity and decreasing bank leverage.

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