If Denmark requires that all foreign banks operating in Denmark have at least ten percent capital,what reason for regulating international banks is this action most likely in support of?

Question

Quizplus · Accepted Answer

Requiring foreign banks to have a minimum capital of ten percent is a way to protect the safety of depositor funds. This regulation ensures that foreign banks have sufficient financial resources to protect their customers' deposits and repay them in case of insolvency or financial difficulties.

If Denmark Requires That All Foreign Banks Operating in Denmark