Explanation

Let's analyze each option:

A. Eliminated Tier 3 capital - ✅ CORRECT CHANGE: Basel III eliminated Tier 3 capital, which was previously used to meet market risk capital requirements under Basel II.

B. Restricted the definition of Tier 1 capital - ✅ CORRECT CHANGE: Basel III introduced stricter criteria for what qualifies as Tier 1 capital, requiring higher quality capital instruments.

C. Increased the (Pillar One) Minimum Total Capital (Tier 1 + Tier 2) requirement - ❌ NOT IMMEDIATELY CHANGED: The minimum total capital requirement remained at 8% of risk-weighted assets in the immediate implementation. The changes were primarily in the composition and quality of capital, not the overall minimum percentage.

D. Adds a capital conservation buffer (CCB) where none existed in Basel II - ✅ CORRECT CHANGE: Basel III introduced a capital conservation buffer of 2.5% (phased in over time) that was not part of Basel II.

Key Point: While Basel III did eventually increase capital requirements through various buffers and stricter definitions, the immediate change in 2011 did not increase the Pillar One Minimum Total Capital requirement from the 8% level established in Basel II. The changes focused on capital quality, composition, and the introduction of buffers that would be phased in over subsequent years.