The Basel III Framework Proposes

question 47

Multiple Choice

The Basel III framework proposes

• A)lower capital requirements for banks to enable them to generate higher earnings to make up for their losses during the credit crisis.
• B)relying on the rating agencies to assess the risk of bank assets.
• C)increased capital requirements and liquidity requirements for banks.
• D)using the gap ratio to set the capital ratio.

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Definitions:

Depression

A mental disorder exemplified by a continual sense of despair or apathy towards activities, leading to considerable difficulties in performing daily tasks.

Confirmation Bias

The tendency to filter, read, prefer, and recall facts in such a way that it endorses one's established convictions or speculations.

Professional Competence

The level of proficiency and skill necessary to perform the duties of a specific profession effectively.

Psychotherapists

Professionals trained to treat psychological disorders and mental distress through verbal and psychological techniques.