Which ofthe following statements would be considered a drawback of Basel III?
A.Procyclicality is a concem,and no countercyclical buffer is provided.
B.It does not consider diversification effects among risk classes.
C.Level 1 diversification benefits are not acknowledged.
D.There are no detailed disclosure requirements for risk management policies conceming credit risk.
Basel III only considers Level 1 diversification benefits(Level 1:within specific class ofrisk,specific line ofbusiness).
Level 2a:within specific class of risk,across specific line of bussiness Level 2b:across specific classes of risk,within a definite legal entity Level 3:across definite classes of risk,across legal entities.