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Risk Regulations in Banking industry
What is the primary objective of Basel III regulations in banking?
Basel III aims to strengthen the regulation, supervision, and risk management of banks by improving the banking sector's ability to absorb shocks arising from financial and economic stress.
What is the minimum Total Capital Adequacy Ratio (CAR) required by RBI under Basel III for Indian banks?
Minimum total CAR is 11.5% including capital conservation buffer.
What does the Capital Conservation Buffer (CCB) require under Basel III?
The Capital Conservation Buffer requires banks to maintain an additional 2.5% of Common Equity Tier 1 (CET1) capital above the minimum requirement to absorb losses during periods of financial stress.
What is the primary purpose of the Basel Accords issued by the Basel Committee on Banking Supervision (BCBS)?
To provide international standards for bank capital adequacy and risk management.
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