‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to

1. develop national strategies for the conservation and sustainable use of biological diversity
2. improve banking sector’s ability to deal with financial and economic stress and improve risk management
3. reduce the greenhouse gas emissions but places a heavier burden on developed countries
4. transfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals.

Explanation

Option (b) is correct

• Basel III Accord is an international regulatory framework developed by the Basel Committee on Banking Supervision. It aims to strengthen the regulation, supervision, and risk management of the banking sector.
• Basel III was introduced to address the weaknesses in financial regulation exposed during the global financial crisis of 2007-2008. It focuses on improving the banking sector’s ability to withstand financial and economic stress, enhance risk management, and ensure that banks maintain sufficient capital buffers to cover potential losses.

Answer: (b) improve banking sector’s ability to deal with financial and economic stress and improve risk management; Difficulty Level: Hard