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

[A] Capital adequacy ratio

[B] MSMEu2019s loans

[C] Priority Sector Lending

[D] External grants

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.
  • The accord was agreed upon at Basel, Switzerland at a meeting of the Bank for International Settlements (BIS).

Source: TMH Ramesh Singh