Banks Are Generally Opposed to High Capital Requirements

Banks are generally opposed to high capital requirements. Moral hazard may partially explain why because

A) subsidies and bailouts reduce the risks associated with a high leverage position.
B) high leverage increases the bank's ability to benefit from the tax shield.
C) imposed high capital requirements impedes the efficient operation of capital markets.
D) imposed high capital requirements impedes the banks ability to use retained earnings to fund capital initiatives.