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2. a) Critically discuss the use of the risk assets ratio used to assess the capital adequacy of banks in the Basel regulatory framework. (10

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2. a) Critically discuss the use of the risk assets ratio used to assess the capital adequacy of banks in the Basel regulatory framework. (10 marks) b) Discuss the changes to the Basel framework for regulating banks introduced by Basel 3 and discuss the extent to which they make a banking crisis less likely (15 marks)

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