Question: a bank has cet1 equal to 8 of its rwa...
Question details
A bank has CET1 equal to 8% of its RWA and no Additional Tier 1 capital and no Tier 2 capital.
Basel III is implemented with a conservation buffer. The regulator of the country in which the bank operates imposes a countercyclical buffer of 2%.
Based on the information above, which of the following statements is CORRECT?
| A. |
The bank has met its minimum requirements and conservation buffer but not the countercyclical buffer. |
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| B. |
The bank has met all the requirements. |
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| C. |
The bank has met its minimum requirements but not the conservation buffer and not the countercyclical buffer. |
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| D. |
The bank has not met any of the requirements. |
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| E. |
There is not enough information to conclude. |
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