Which of the following actions can be used to reduce excessive risk taking and managerial fraud?

Question

Quizplus · Accepted Answer

All of the above actions can contribute to reducing excessive risk taking and managerial fraud. Improving capital standards ensures that banks have adequate buffers to absorb losses and reduces the incentive to take excessive risks. Risk-sensitive deposit insurance pricing ensures that banks pay a fair premium based on the level of risk they take, discouraging excessive risk taking. Improving monitoring procedures and regulatory surveillance can help detect and prevent fraudulent behavior. Restricting entry into banking can help limit the number of players in the market, reducing competition and the incentives for excessive risk taking. Therefore, all of these actions are important for reducing excessive risk taking and managerial fraud.

Which of the Following Actions Can Be Used to Reduce