Question

Q6. ‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to

• A. (a) Develop national strategies for the conservation and sustainable use of biological diversity
• B. (b) Improve banking sector’s ability to deal with financial and economic stress and improve risk management
• C. (c) Reduce the greenhouse gas emissions but places a heavier burden on developed countries
• D. (d) Transfer technology from developed Countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals

Answer 1

The correct option is B (b) Improve banking sector’s ability to deal with financial and economic stress and improve risk management

Basel III Accord is global, voluntary regulatory framework have certain reform measures that are developed by Basel Committee in 2010–11 with an idea to supervise Banking sector in terms of improving risk management, strengthen banks’ transparency and disclosures and capabilities to digest shocks appeared from financial and economic stress. This confirms that option B is correct. Option A is incorrect as idea of Basel III Accord is not to develop national strategies for conservation and sustainable use of biological diversity. Option C is incorrect as idea of Basel III Accord is related to finance and banking and not reduce greenhouse gas emissions. Option D is incorrect as Basel III Accord is not related to chemical technology transfer of chlorofluorocarbons with harmless chemicals.