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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.

B.

The bank has met all the requirements.

C.

The bank has met its minimum requirements but not the conservation buffer and not the countercyclical buffer.

D.

The bank has not met any of the requirements.

E.

There is not enough information to conclude.

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