Because banks engage in regulatory arbitrage, the Basel Accord on risk-based capital requirements may result in...

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Because banks engage in regulatory arbitrage, the Basel Accord on risk-based capital requirements may result in O increased fraudulent behavior by banks. O reduced risk taking by banks. increased risk taking by banks. reduced supervision of banks by regulators. Because banks engage in regulatory arbitrage, the Basel Accord on risk-based capital requirements may result in O increased fraudulent behavior by banks. O reduced risk taking by banks. increased risk taking by banks. reduced supervision of banks by regulators.