Under Basel III,more flexible capital standards which includes the "buffer concept" means involvement of which two ratios?
A)Base capital and leverage ratio
B)Base capital and buffer ratio
C)Capital and risk-weighted assets ratio
D)Leverage and buffer ratio
E)Risk-weighted assets ratio and buffer ratio

Question

Quizplus · Accepted Answer

Under Basel III, the "buffer concept" involves the use of a buffer ratio, which is a ratio of a bank's capital to its risk-weighted assets. The buffer ratio is designed to provide a cushion of capital that can be used to absorb losses in the event of a financial crisis. The base capital ratio is a measure of a bank's core capital, which is the capital that is available to absorb losses.

Under Basel III,more Flexible Capital Standards Which Includes the "Buffer