3. Capital regulation Which of the following scenarios would result in a decrease in a bank's capital ratio? Check all that apply. A bank that has not been performing strongly engages in a secondary stock offering in an attempt to raise $2 million. A bank announces that it has increased its dividends from $3.50 per share to $4.50 per share. A bank announces that it has decreased its dividends from $3.50 per share to $2.50 per share. A bank purchased $4 million worth of stocks one year ago and sells them for 54 million today. Basel 1 According to the Basel I framework, which of the following assets would be given the highest risk weighting? O Treasury securities O Municipal bonds O Stocks O Cash Basel II Which of the following was done under Basel II guidelines? Revisions were made to what assets banks could invest in. O Revisions were made recommending that banks maintain a capital conservation buffer of at least 2.5 percent of their risk-weighted assets. Revisions were made to the type of analysis banks should do based on the potential of negative economic scenarios. Banks' capital ratio requirements began to factor in operational risk. Basel III Which of the following was done under Basel III guidelines? Revisions were made recommending a more rigorous process for identifying risk-weighted assets. O Revisions were made to what assets banks could invest in. Revisions were made to the way banks could acquire risky assets. Banks' capital ratio requirements began to factor into operational risk. 3. Capital regulation Which of the following scenarios would result in a decrease in a bank's capital ratio? Check all that apply. A bank that has not been performing strongly engages in a secondary stock offering in an attempt to raise $2 million. A bank announces that it has increased its dividends from $3.50 per share to $4.50 per share. A bank announces that it has decreased its dividends from $3.50 per share to $2.50 per share. A bank purchased $4 million worth of stocks one year ago and sells them for 54 million today. Basel 1 According to the Basel I framework, which of the following assets would be given the highest risk weighting? O Treasury securities O Municipal bonds O Stocks O Cash Basel II Which of the following was done under Basel II guidelines? Revisions were made to what assets banks could invest in. O Revisions were made recommending that banks maintain a capital conservation buffer of at least 2.5 percent of their risk-weighted assets. Revisions were made to the type of analysis banks should do based on the potential of negative economic scenarios. Banks' capital ratio requirements began to factor in operational risk. Basel III Which of the following was done under Basel III guidelines? Revisions were made recommending a more rigorous process for identifying risk-weighted assets. O Revisions were made to what assets banks could invest in. Revisions were made to the way banks could acquire risky assets. Banks' capital ratio requirements began to factor into operational risk