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Assume that you are an official from APRA. In an orientation meeting with bank executives, one of the participants asks you why regulators are more

  1. Assume that you are an official from APRA. In an orientation meeting with bank executives, one of the participants asks you why regulators are more concerned with the capital adequacy of banks compared to the capital holdings of a similar sized non-financial institution. Please briefly respond to this executive. [2 marks]

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