Define Leverage Ratio. What are the Objectives of Maintaining Leverage Ratio in Financial Institutions?
Day: May 20, 2026
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Why is Liquidity Important in Banking? Which Pillar of Basel-III Discusses Liquidity Risk?
Liquidity is very important in banking because it ensures that a bank can meet its financial obligations and cash withdrawal demands on time. A bank must maintain sufficient liquid assets to handle unexpected cash outflows and stressed financial situations. In…
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What are the Liquidity Standards/Ratios Suggested by Basel-III? Explain
The global financial crisis of 2008 showed that many banks suffered due to weaknesses in liquidity risk management. Therefore, Basel-III introduced internationally harmonized global liquidity standards to strengthen banks’ liquidity position. The two important liquidity standards under Basel-III are: 1….
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What does market discipline mean under Basel framework? Explain its purpose
Market Discipline is related to the Pillar-3 of the Basel Framework. Under the Basel Framework, market discipline means creating a more transparent and disciplined financial market through the disclosure of timely, accurate, and relevant financial and risk-related information by banks….