Which of the following statements is true?
A) Basel II broadened measures for measurement of capital and introduced the concept of two pillars to protect solvency of individual FIs whereas Basel III introduced liquidity and higher capital levels to protect the financial system in general.
B) APRA introduced an enhanced Basel II called Basel 2.5 with new provisions that were difficult for Australian FIs to meet in the short term.
C) Basel II set targets that were commensurate with the risk profile and environment in an endeavour to protect solvency of individual FIs whereas Basel III introduced liquidity and higher capital levels to protect the financial system in general.
D) Basel III changes to capital requirements requires higher secondary capital levels to be held by FIs.
Correct Answer:
Verified
Q51: The capital conservation buffer is _ of
Q52: Basel III has introduced the first set
Q53: Choose the correct statement:
A)For DIs adopting advanced
Q54: In the standardised approach to operational risk
Q55: The market risk capital charge is included
Q57: Choose the correct statement:
A)Any Pillar 2 adjustment
Q58: The book value of an asset or
Q59: The regulation required under Basel II is
Q60: To calculate the operational risk capital charge,
Q61: Identify the main functions of an FI's
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