Which one of the following statements is incorrect under Basel III?
A) Instruments qualifying for recognition as Tier 1 or Tier 2 capital will be substantially restricted.
B) Basel III does not include Tier 3 capital
C) There is a distinction between upper Tier 2 and lower Tier 2 capital
D) New non-common equity Tier 1 and Tier 2 instruments are more loss-absorbing than previously

Question

Quizplus · Accepted Answer

Basel III does not make a distinction between upper Tier 2 and lower Tier 2 capital; this distinction was part of Basel II.

Which One of the Following Statements Is Incorrect Under Basel