Which of the following differences between BASEL III and BASEL II are not true: I. Basel...

80.2K

Verified Solution

Question

Accounting

Which of the following differences between BASEL III and BASELII are not true: I. Basel III strengthened Basel II capitalrequirements by increasing CET1 capital to 6% of a bank's totalassets. II. Basel III established two new financial liquidityrequirements, the Liquidity Coverage Ratio and the Net StableFunding Ratio. III. Basel III established a minimum leverage ratioof Tier 1 Capital to total exposure of 3%. IV. Basel III required anew "discretionary counter-cyclical buffer" of 2.5% of RWA.

Answer & Explanation Solved by verified expert
4.2 Ratings (565 Votes)
Please give positive ratings so I can keep answering If you have any queries please comment Thanks The cornerstone of the Basel III framework is enhanced riskweighted capital    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students