Answer: Increased the (Pillar One) Minimum Total Capital (Tier 1 + Tier 2) requirement

## 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.

Author: LeetQuiz .