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
Correct Answer:
Verified
Q15: The rate of discount on bills can
Q16: Commercial banks operate primarily to
A) help people.
B)
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Q18: Which of the following defines capital adequacy?
A)
Q19: Which of the following statements is correct?
Q21: The ability of commercial banks to make
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Q23: A bank has £100 million in liquid
Q24: The ratio of reserves to the total
Q25: Which of the following defines secondary marketing?
A)
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