Concern about bank solvency has been used to justify product segmentation on the grounds of
A)safety and soundness issues.
B)economy of scale and scope issues.
C)conflict of interest issues.
D)deposit insurance issues.
E)regulatory oversight issues.

Question

Quizplus · Accepted Answer

Concern about bank solvency, or the ability of a bank to meet its financial obligations, is a safety and soundness issue that regulators and policymakers are concerned with. Product segmentation, or limiting certain activities or products of banks, is seen as a way to mitigate risks to the bank's solvency and overall safety and soundness.

Concern About Bank Solvency Has Been Used to Justify Product