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The Basel III accord requires banks to: A) increase lending to less developed countries. B) pay...

The Basel III accord requires banks to:

A) increase lending to less developed countries.

B) pay higher premiums for deposit insurance.

C) maintain higher levels of capital if they have riskier assets.

D) reduce their short-term loans.

Solutions

Expert Solution

Basel 3 accord requires banks to maintain a reserve capital and leverage. Hence, it does not talk about it's short term loans or deposit insurance premiums or increasing lending to less developed countries. Therefore, the Basel III accord requires banks to

C) Maintain higher levels of capital if they have riskier assets.

jeff jeffy answered 2 years ago
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