Which of the following statements regarding leverage ratio framework are untrue?
A) The leverage ratio complements the risk-weighted capital requirements by providing a safeguard against unsustainable levels of leverage.
B) The leverage ratio complements the risk-weighted capital requirements by mitigating gaming and model risk across both internal models and standardized risk measurement approaches.
C) The leverage ratio G-SIB buffer must be met with Tier 5 capital and is set at 10% of a G-SIB's risk weighted higher-loss absorbency requirements.
D) The leverage ratio buffer takes the form of a capital buffer akin to the capital buffers in the risk-weighted framework.
E) all of the above statements are true.
Correct Answer:
Verified
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