Which of the following statements regarding capital adequacy requirements is incorrect?
A) Existing credit-risk guidelines are extended to include market risk arising from a bank's trading activities.
B) Regulators focus on credit risk, market risks, operational risk and type of capital held.
C) Eligible Tier 1 capital must constitute at least 70% of a bank's capital base.
D) Tier 2 capital is divided into upper and lower Tier 2 parts.
Correct Answer:
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