Answer: C. I and III
In December 2010, the Basel committee introduced liquidity standards as a part of
the Basel III capital regime, including the Liquidity Coverage Ratio (LCR) and the Net
Stable Funding Ratio (NSFR).
The effect was to increase banks’ short- and long-term resilience.
The LCR addresses whether banks have adequate high-quality assets to survive stressed liquidity conditions over a 30-day period.
The NSFR guides banks to adopt resilience over long-term time horizons by creating more incentives for financial institutions to fund their activities with more stable sources of funding on an ongoing structural basis.