The risk-based capital requirements have received several types of criticism.Please match the criticism headings below (as stated in the text)with the appropriate criticism explanations in questions 20-122 to 20-130.
-20-130 Regulators may not be trained or willing to make the necessary decisions that may rely heavily on judgment.
A)Competition
B)DI specialness
C)Excessive complexity
D)Impact on capital requirements
E)Other risks
F)Pillar 2 may ask too much of regulators
G)Portfolio aspects
H)Risk weights
I)Risk weights based on external credit rating agencies
Correct Answer:
Verified
Q131: 20-137 If the bank has capital of
Q132: 20-143 What is the credit equivalent amount
Q133: 20-135 If the loan portfolio consists of
Q134: 20-147 What is the minimum total capital
Q135: 20-139 What is the ratio of capital
Q136: 20-136 If the loan portfolio consists of
Q138: 20-138 What is the amount of risk-adjusted
Q139: 20-131 How would regulators characterize this FI
Q140: 20-140 What is the bank's risk-adjusted assets
Q141: 20-149 Is the firm adequately capitalized if
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