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a) The Loanable Funds Theory has been subject to various criticisms. Discuss. [4 marks] b) In December 2010, the Basel Committee on Banking Supervision (BCBS)

a) The Loanable Funds Theory has been subject to various criticisms. Discuss.

[4 marks]

b) In December 2010, the Basel Committee on Banking Supervision (BCBS) published reforms on capital and liquidity rules. Explain the objectives of these reforms of the BCBS. [4.5 marks]

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