Which one of the following statements correctly describes the increased capital ratios that will come into effect under Basel III?
A) minimum tier 1 capital of 4.5% and minimum total capital plus a conservation buffer of 10.5%
B) minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 8%
C) minimum tier 1 capital of 4% and minimum total capital including conservation buffer of 10.5%
D) minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 10.5%

Question

Quizplus · Accepted Answer

According to Basel III, the minimum tier 1 capital ratio is 6% and the minimum total capital ratio including the conservation buffer is 10.5%. Therefore, option D is the correct statement.

Which One of the Following Statements Correctly Describes the Increased