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Which of the following is a key additional focus area under Basel III?

medium Q14 of 15
Banking Awareness - Banking Acts, Reforms & Risk Management
Which of the following is a key additional focus area under Basel III?
AReduction of bank branches
BPrivatisation of public sector banks
CLiquidity and capital quality
DRemoval of risk-weighted assets
Step-by-Step Solution
  1. Step 1: Recall enhancements in Basel III

    Basel III strengthened earlier Basel norms.
  2. Step 2: Identify new focus areas

    It emphasised high-quality capital and liquidity buffers.
  3. Final Answer:

    Liquidity and capital quality → Option C
  4. Quick Check:

    Basel III = strong capital + liquidity ✅
Quick Trick: Liquidity rules appear only in Basel III.
Common Mistakes:
MISTAKES
  • Assuming Basel III removed capital requirements.
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