The practice of keeping high-risk assets on a bank's books while removing low-risk assets with the same capital requirement is known as

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Regulatory arbitrage refers to the practice of taking advantage of the difference in regulatory requirements between different jurisdictions or within a single jurisdiction to gain a competitive advantage or reduce regulatory costs. In this case, the bank is removing low-risk assets from its books to reduce its capital requirement, while keeping high-risk assets that may have the same capital requirement. This is an example of regulatory arbitrage.

The Practice of Keeping High-Risk Assets on a Bank's Books