[Solved] Consider the following statements regarding Basel III norms: Statement 1: Basel III reduced the minimum capital requirements for banks. Statement 2:... Which of the above statements is/are correct? | Banking Awareness

Banking Awareness - Banking Acts, Reforms & Risk Management

Consider the following statements regarding Basel III norms: Statement 1: Basel III reduced the minimum capital requirements for banks. Statement 2: Basel III introduced Liquidity Coverage Ratio (LCR). Which of the above statements is/are correct?

AOnly Statement 2 is correct

BBoth Statement 1 and Statement 2 are correct

CNeither Statement 1 nor Statement 2 is correct

DOnly Statement 1 is correct

Step-by-Step Solution

Step 1: Check Statement 1
Basel III increased capital requirements to strengthen banks.
Step 2: Check Statement 2
Basel III introduced the Liquidity Coverage Ratio (LCR).
Final Answer:
Only Statement 2 is correct → Option A
Quick Check:
Basel III = higher capital + liquidity norms ✅

Quick Trick: Basel III always tightens capital and liquidity rules.

Common Mistakes:

MISTAKES

Assuming Basel III relaxed capital requirements.

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Which of the above statements is/are correct?

Step 1: Check Statement 1

Step 2: Check Statement 2

Final Answer:

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