Question 16

According to Basel III, a Capital Conservation Buffer:

• A. Rxequire banks to hold 6.5% of common equity
• B. Promotes the buildup of capital in good times that can be drawn upon in periods of stress
• C. Requires a bank to hold sufficient high-quality liquid assets to cover its total net cash outflows over 30 days
• D. Require the available amount of stable funding to exceed the required amount of stable funding over a one-year period of extended stress