Which regulatory framework primarily focuses on the management of market risk for financial institutions? A. Basel III B. IFRS 9 C. Solvency II D. Sarbanes-Oxley Act
Question
Which regulatory framework primarily focuses on the management of market risk for financial institutions? A. Basel III B. IFRS 9 C. Solvency II D. Sarbanes-Oxley Act
Solution
The regulatory framework that primarily focuses on the management of market risk for financial institutions is A. Basel III. This framework was developed by the Basel Committee on Banking Supervision to strengthen the regulation, supervision, and risk management within the banking sector. It aims to improve the banking sector's ability to deal with financial stress, improve risk management, and strengthen banks' transparency.
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