Basel III Accord' or simply Basel III', often seen in the news, seeks to
A
develop national strategies for the conservation and sustainable use of biological diversity
B
improve banking sector's ability to deal with financial and economic stress and improve risk management
C
reduce the greenhouse gas emissions but places a heavier burden on developed countries
D
transfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals
Correct Answer: Option B
Explanation
1. 'Basel III Accord' or 'Basel III' refers to a comprehensive set of reform measures developed by the Basel Committee on Banking Supervision (BCBS) to strengthen the regulation, supervision, and risk management of the banking sector globally.
2. These measures primarily aim to improve the banking sector's resilience by increasing the minimum capital requirements for banks, introducing requirements for holding high-quality liquid assets to withstand stress scenarios, and addressing systemic risk.
3. Therefore, Basel III seeks to improve the banking sector's ability to deal with financial and economic stress and improve risk management (Option B).
4. Option (A) relates to the Convention on Biological Diversity (CBD) and associated strategies like the National Biodiversity Strategies and Action Plans (NBSAPs).
5. Option (C) relates to climate change agreements like the Kyoto Protocol, dealing with greenhouse gas emissions.
6. Option (D) relates to the Montreal Protocol and its mechanisms for phasing out ozone-depleting substances like chlorofluorocarbons (CFCs).