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Why Will Large Global Financial Institutions Be Required to Have

Question 20

Multiple Choice

Why will large global financial institutions be required to have a CET1 ratio of up to 2.5% higher than other banks?


A) Because the failure of such an institution could trigger another financial crisis
B) Because the liquidity ratio of large global financial institutions tends to be lower, meaning they present a significantly higher risk to financial stability
C) Because other financial institutions have lower capital adequacy ratios
D) Because they are wholesale banks

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