Q. Basel Accords is often seen in news is related to which of the following?

[A] Capital Adequacy

[B] Developmental Financial Institutions

[C] Private sector lending

[D] Merging of Banks

Answer: A

Explanation: The capital adequacy ratio (CAR) norm has been the last provision to emerge in the area of regulating the banks in such a way that they can sustain the probable risks and uncertainties of lending.

It was in 1988 that the central banking bodies of the developed economies agreed upon such a provision, the CAR—also known as the Basel Accord.

Source: Ramesh Singh