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Consider a bank that has an actual CET1 risk-weighted ratio of 4% in a country with a 2.5% conservation buffer and a 1% countercyclical buffer.

Consider a bank that has an actual CET1 risk-weighted ratio of 4% in a country with a 2.5% conservation buffer and a 1% countercyclical buffer. Under Basel III rules, _________________________.

A.

the regulator does not impose any restrictions to the bank.

B.

the regulator imposes some limitations on the bank's asset growth.

C.

the regulator imposes restrictions on the bank's distribution of bonuses and dividends.

D.

The regulator imposes that the bank go bankrupt.

E.

The regulator imposes that the bank expand its assets.

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