For ongoing maintenance of regulatory capital, which of the following risks were covered by Pillar-1…
Under the Basel II / Basel III capital adequacy framework, Pillar 1 ('Minimum Capital Requirements') mandates that banks calculate and maintain regulatory capital (Capital…
Choose your answer
For ongoing maintenance of regulatory capital, which of the following risks were covered by Pillar-1 Minimum Capital Requirement?
A. Credit Risk
B. Financial risk
C. Operation Risk
D. Market Risk
E. Reputational Risk
Answer and explanation
Correct answer D
Under the Basel II / Basel III capital adequacy framework, Pillar 1 ('Minimum Capital Requirements') mandates that banks calculate and maintain regulatory capital (Capital to Risk-Weighted Assets Ratio) explicitly covering three core quantifiable risk categories: Credit Risk (A), Operational Risk (C), and Market Risk (D).
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UGC NET Commerce