Pillar 3 of the Basel framework is:
AMoney supply data
BMinimum capital rule
CManaged float rule
DMarket discipline
Answer & Solution
Correct answer: D. Market discipline
1. Disclosure lets outsiders judge a bank's risk.
2. That judgement is a check on the bank.
3. Pillar 3 is market discipline.
_Source: Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025_
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