Since 1998 the market risk capital requirement was uniformly a large proportion of the total risk capital requirements for Australian banks, and losses due to market risk continued to increase during and post the global financial crisis.

Question

Quizplus · Accepted Answer

Market risk typically constitutes a smaller portion of the total risk capital requirements for banks compared to credit risk. During and post the global financial crisis, losses were more significantly driven by credit risk rather than market risk.

Since 1998 the Market Risk Capital Requirement Was Uniformly a Large