Consider the following statements with respect to Basel III norms, prescribed by the Basel Committee on Banking Supervision:
1. It requires banks to maintain sufficient capital in order to meet an unexpected default.
2. It requires banks to maintain capital to cover risks like cyber-attack on bank server.
Which of the statements given above is/are correct?
1 only
2 only
Both 1 and 2
Neither 1 nor 2
• Basel III norms prescribe banks to hold capital to cover 3 types of risks, including
• Credit risk: Risk of defaults;
• Market risk: Risks that may arise out of market risks, as banks hold risky assets, including ones in the equity market.
• Operational risk: Including fraud, cyber threats, physical threats, etc.
The term 'West Texas Intermediate', sometimes found in news, refers to a grade of
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