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UPSC 2015: 'Basel III Accord' or simply 'Basel III', often seen in the news, seeks to
(a)develop national strategies for the conservation and sustainable use of biological diversity
(b)improve banking sector's ability to deal with financial and economic stress and improve risk management
(c)reduce the greenhouse gas emissions but places a heavier burden on developed countries
(d)transfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals
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Not attemptedCorrect Answer: (b) improve banking sector's ability to deal with financial and economic stress and improve risk management
Basel III is a set of international banking regulations developed by the Basel Committee on Banking Supervision (BCBS) after the 2008 global financial crisis. Its primary objective is to strengthen the regulation, supervision, and risk management within the banking sector by requiring banks to maintain higher capital reserves, better liquidity ratios (Liquidity Coverage Ratio and Net Stable Funding Ratio), and a leverage ratio to limit excessive borrowing. This improves the banking sector's ability to absorb financial and economic shocks. Options (a), (c), and (d) describe the Convention on Biological Diversity, the Kyoto Protocol, and the Montreal Protocol respectively. Hence, option (b) is correct.
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Frequently Asked Questions
What is the correct answer to this UPSC 2015 Indian Economy question?▼
The correct answer is option (b): improve banking sector's ability to deal with financial and economic stress and improve risk management. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Banking & Financial Sector question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2015, GS Paper 1, as Question 65. It falls under Indian Economy > Banking & Financial Sector.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Banking & Financial Sector?▼
UPSC has asked 48 questions from Banking & Financial Sector (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.