The primary role of capital for an FI is to assure the highest possible return on equity for its shareholders.

Name: The primary role of capital for an FI is to assure the highest possible return on equity for its shareholders.
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Question

Quizplus · Accepted Answer

The primary role of capital for an FI is to ensure the safety and soundness of the institution by maintaining adequate levels of capital to absorb potential losses. While a high return on equity may be a desired outcome, it is not the primary purpose of capital.

The Primary Role of Capital for an FI Is to Assure