B

问题如下：

Each of the following was both (i) a deficiency oromission of Basel II but is, at the same time, (ii) explicitly addressed by newrequirement in Basel III except for

选项：

A.

Basel II did not formally include liquidity risk, butBasel III explicitly covers liquidity risk

B.

Basel II could arguably create a procyclical effect,but Basel III explicitly adds a buffer to address this

C.

Basel II did not require external credit ratings, butBasel III seeks to increase the reliance on external ratings

D.

Basel II allowed many banks to show strong risk-basedregulatory capital ratios despite high on- and off-balance sheet leverage;Basel III adds a simple leverage ratio to act as a backstop to the risk-basedcapital ratio

解释：

This is extremely false: Basel II reliesheavily on external credit ratings and the Committee has a focus to REDUCEreliance on external ratings.

In regard to (A), Basel III will add the LiquidityCoverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR).In regard to (B),Basel III will phase-in the countercyclical buffer requirement. In regard to(D), this is TRUE. The new leverage ratio (Tier 1/Total Exposure) will beginin2013 as an additional measure.