Basel Norms and Global Banking Standards

12345

What is the primary objective of Basel norms in the banking sector?

To promote retail banking

To ensure banks operate profitably

To strengthen the regulation, supervision, and risk management of banks

To reduce competition among banks

Basel I primarily focused on:

Capital adequacy based on risk-weighted assets

Liquidity requirements

Market risk management

Credit default swaps

Which of the following risks was specifically addressed by Basel II?

Operational risk

Inflation risk

Sovereign risk

Interest rate risk

The minimum capital adequacy ratio (CAR) prescribed under Basel III for Indian banks is:

10.5%

12%

In Basel III, the leverage ratio is defined as:

Tier 1 capital to total risk-weighted assets

Tier 1 capital to total assets

Tier 2 capital to total risk-weighted assets

Tier 2 capital to total assets