Questionary I. Basel History FOS

When was the Basel Committee established?

• 1974

• 1988

• 2004

• 1990

What was the primary aim of the Basel Committee at its inception?

• To create a global currency

• To eliminate banking competition

• To regulate stock markets

• To enhance financial stability

Which Basel Accord introduced a minimum capital ratio of 8%?

• Basel III

• Basel IV

• Basel II

• Basel I

What significant event prompted the Basel Committee to strengthen its framework in 2008?

• The establishment of the G20

• The collapse of Lehman Brothers

• The rise of digital banking

• The introduction of Basel II

What is the primary focus of Basel III?

• International trade agreements

• Interest rate regulation

• Liquidity and capital requirements

• Consumer protection laws

Which document set out 25 basic principles for effective banking supervision?

• Core principles for effective banking supervision

• Concordat

• Basel Capital Accord

• Minimum standards for supervision

What does the capital conservation buffer in Basel III aim to do?

• Increase bank profits

• Eliminate capital requirements

• Encourage risky investments

• Restrict payouts when breached

Which Basel framework was released in June 2004?

• Basel II

• Basel I

• Basel III

• Basel IV

What is the Liquidity Coverage Ratio (LCR) designed to provide?

• Funding for new banks

• Cash for 30 days of stress

• Long-term investment strategies

• Insurance against market crashes

What was a key objective of the Basel III revisions?

• Simplify banking regulations

• Reduce variability of risk-weighted assets

• Increase the number of banks

• Lower interest rates globally