The CAR is the primary form of prudential supervision, whereas efforts by APRA to ensure ADIs are capable of identifying and managing their risks are of secondary importance.

Question

Quizplus · Accepted Answer

The statement is the opposite of reality. APRA's efforts to ensure ADIs are capable of identifying and managing their risks are the primary form of prudential supervision, while the CAR is an important tool for assessing capital adequacy as a backup.

The CAR Is the Primary Form of Prudential Supervision, Whereas