gs1medium
‘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
▶ Answer & Explanation
Correct answer: B. improve banking sector’s ability to deal with financial and economic stress and improve risk management
The Basel Accords are international banking regulations set by the Basel Committee on Banking Supervision (BCBS). Basel III was developed in response to the global financial crisis of 2007-08 and aims to strengthen the regulation, supervision, and risk management of banks. It enhances banks' ability to absorb shocks arising from financial and economic stress, thereby reducing the risk of spillover from the financial sector to the real economy.
Source: UPSC gs1 2015