Identify and discuss the problems in the risk-based capital approach to measuring capital adequacy.
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First the risk weights may not be true representations of the correct or necessary weights or they may not be in the correct proportion to each other For example does a weight of 100 percent imply twi...View the full answer
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Related Book For 
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
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