Which of the following are criticisms of a risk-based capital ratio?
A) The risk-class categories might not adequately reflect riskiness.
B) The 8% risk-based capital requirement has not created a level competitive playing field across banks.
C) Credit risk portfolio diversification opportunities are largely ignored.
D) All of the listed options are correct.
Correct Answer:
Verified
Q26: Choose the correct statement:
A)Basel II provides a
Q27: Economic capital is:
A)the asset and liability values
Q28: Common equity Tier 1 is:
A)made up discretionary
Q29: The risk of loss owing to changes
Q30: Loan loss reserve is:
A)the accumulated value of
Q32: Which of the following statements is true
Q33: Consider an FI with the following off-balance-sheet
Q34: Market risk is made up of:
A)risk of
Q35: Procyclicality refers to features or characteristics that:
A)serve
Q36: Total capital (Tier 1 capital plus Tier
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