The primary protection against the risk of ADI insolvency in Australia is:
A) the CAR (capital adequacy requirement)
B) the effective management by banks of the risks they face
C) monitoring by the Reserve Bank (Australia's central bank)
D) monitoring by APRA (Australia's prudential regulator)
E) access to an active money market.
Correct Answer:
Verified
Q44: The amount of non-performing loans is most
Q45: Operating risk is:
A)the risk of loss resulting
Q46: Profitability is an important indicator of the
Q47: When fully implemented, Basel III will increase
Q48: The RBA's responsibility for financial system stability
Q50: Comment on the general performance of loans
Q51: Describe maturity mismatch and identify and explain
Q52: Prudential supervision of ADIs in Australia:
A)is required
Q53: Explain how ADIs have changed their management
Q54: Describe how ADIs manage their credit risk
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