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    Question

    What is the primary objective of the Basel III norms for

    banks?
    A Increasing the interest rates on bank deposits Correct Answer Incorrect Answer
    B Improving financial literacy in rural areas Correct Answer Incorrect Answer
    C Strengthening capital adequacy and risk management Correct Answer Incorrect Answer
    D Reducing competition among banks Correct Answer Incorrect Answer
    E Encouraging banks to issue more loans Correct Answer Incorrect Answer

    Solution

    Basel III norms were introduced to enhance the capital adequacy, risk management, and liquidity requirements of banks worldwide. It includes stricter capital buffers, leverage ratios, and liquidity coverage ratios to improve banking stability.

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