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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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