The Basel III accord is an international regulatory accord that introduced a set of reforms designed to improve the regulation, supervision, and risk management within the banking sector. The agreements under the Basel III are responses to the financial crisis of 2007 to 2008.

a) Why didn't the Basel II accord prevent the financial crisis of 2007 to 2008?

b) Compared with Basel II, what are the key improvements that Basel III accord has made?

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a The Basel II accord finalized in 2004 aimed to create an international standard for banking regulation and improve banks ability to manage risk However it had several limitations that may have contr... View the full answer