Question

The 'Basel III' framework, monitored by the BIS, is primarily concerned with:

Q: Answer-The 'Basel III' framework, monitored by the BIS, is primarily concerned with:

Basel III is an international regulatory accord developed by the Basel Committee on Banking Supervision BCBS at the Bank for International Settlements BIS in response to the deficiencies in financial regulation revealed by the 2007-08 global financial crisis. Its three core pillars aim to strengthen the banking sector Minimum Capital Requirements Higher quality and quantity of capital Common Equity Tier 1. Supervisory Review Process Enhanced risk management and supervision, including stress testing . Market Discipline Improved disclosures. It also introduced new liquidity standards Liquidity Coverage Ratio - LCR, Net Stable Funding Ratio - NSFR to prevent short-term bank runs.