✓ Correct answer: A. Basel IIIBasel III provides the international benchmark that the PRA uses when establishing capital and liquidity rules for UK banks.
Why the other options are incorrect:
• Solvency II: Solvency II is an insurance-sector framework, not applicable to bank capital regulation.
• GDPR: GDPR is a data privacy regulation with no bearing on capital adequacy rules.
• MiFID II: MiFID II deals with market conduct and investment services, not prudential capital requirements.
• UK Companies Act: The Companies Act governs corporate structure and governance, not the capital standards of banks.
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