Economy
2015
Banking in India
RBI and Functions

‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to

C.reduce the greenhouse gas emissions but places a heavier burden on developed countries
A.develop national strategies for the conservation and sustainable use of biological diversity
D.transfer technology from developed Countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals
B.improve banking sector’s ability to deal with financial and economic stress and improve risk management

Correct Answer: Option B

Basel III (or the Third Basel Accord) is a global, voluntary regulatory framework addressing bank capital adequacy, stress testing, and market liquidity risk.

It was agreed upon by the members of the Basel Committee on Banking Supervision in 2010–11, with initial implementation scheduled from 2013 to 2015.

The primary goal of Basel III is to improve the banking sector’s ability to handle financial and economic stress and to enhance risk management.

Hence, option B is the correct answer.

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