Similar to Basel II, Basel III will require banks to assign on-balance-sheet assets to one of four categories of credit risk exposure.

Question

Quizplus · Accepted Answer

Basel III does not require banks to assign on-balance-sheet assets to one of four categories of credit risk exposure; this is a characteristic of Basel II, which introduced standardized approaches for credit risk. Basel III focuses more on improving the quality and quantity of capital, risk coverage, leverage ratios, and liquidity standards.

Similar to Basel II, Basel III Will Require Banks to Assign