'Basel III Accord' or simply 'Basel III', often seen in the news, seeks to
A
develop national strategies for the conservation and sustainable use of biological diversity
B
improve banking sector's ability to deal with financial and economic stress and improve risk management
Correct Answer
C
reduce the greenhouse gas emissions but places a heavier burden on developed countries
D
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 a global regulatory framework designed to strengthen the banking sector by increasing capital adequacy ratios and improving liquidity management to ensure banks can withstand financial and economic stress. Options (a), (c), and (d) are incorrect as they describe environmental agreements—specifically the Convention on Biological Diversity, the Kyoto Protocol, and the Montreal Protocol, respectively. The core concept tested is international banking standards and financial risk management.
International Financial InstitutionsBanking RegulationsBasel III AccordBasel IIIbanking sectorfinancial and economic stressrisk managementcapital adequacy