Under Basel II prudential standards,an institution is required to maintain a risk-based capital ratio of _____ of total-risk-weighted assets.

Question

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Basel II prudential standards require institutions to maintain a minimum risk-based capital ratio of 8% of total-risk-weighted assets to ensure they have enough capital to withstand losses and continue operating. Option A (2.00 percent) and B (4.00 percent) are too low, while Option D (10.00 percent) is too high for the minimum requirement.

Under Basel II Prudential Standards,an Institution Is Required to Maintain