Basel III is a global voluntary regulatory risk framework on bank capital adequacy, stress testing, and market liquidity risk. The third Accord focuses on improving the three pillars under Basel II, to mitigate banks against systemic risk by: a.Increasing capital to ensure risk is more adequately covered. b.Improving countercyclical buffers to guard against system impact. c.All of the above. d.Requiring the use of certain ratios for short-term and long-term liquidity coverage.
Basel III is a global voluntary regulatory risk framework on bank capital adequacy, stress testing, and market liquidity risk. The third Accord focuses on improving the three pillars under Basel II, to mitigate banks against systemic risk by: a.Increasing capital to ensure risk is more adequately covered. b.Improving countercyclical buffers to guard against system impact. c.All of the above. d.Requiring the use of certain ratios for short-term and long-term liquidity coverage.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Basel III is a global voluntary regulatory risk framework on bank capital adequacy, stress testing, and market liquidity risk. The third Accord focuses on improving the three pillars under Basel II, to mitigate banks against systemic risk by:
a.Increasing capital to ensure risk is more adequately covered.
b.Improving countercyclical buffers to guard against system impact.
c.All of the above.
d.Requiring the use of certain ratios for short-term and long-term liquidity coverage.
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