Financial Awareness - Risk, Stability & Emerging Finance
Which of the following risks was NOT explicitly covered under Basel II but was included in Basel III?
Which of the following risks was NOT explicitly covered under Basel II but was included in Basel III?
easy Q2 of 15
Step-by-Step Solution
Step 1: Recall risk coverage in Basel II
Basel II covered credit risk, operational risk, and market risk explicitly.Step 2: Identify new risk coverage in Basel III
Basel III introduced liquidity risk management through liquidity ratios like LCR and NSFR, which were not part of Basel II.Final Answer:
Liquidity Risk → Option CQuick Check:
Liquidity risk coverage = Basel III only ✅
Quick Trick: Liquidity risk introduced in Basel III, not Basel II.
Common Mistakes:
- Assuming liquidity risk was part of Basel II pillars.
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