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Deposit taking institutions are subject to capital adequacy standards imposed by APRA (Australian Prudential Regulation Authority). Required: a) Explain the purpose of the capital adequacy

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Deposit taking institutions are subject to capital adequacy standards imposed by APRA (Australian Prudential Regulation Authority). Required: a) Explain the purpose of the capital adequacy requirements placed on commercial banks. (4 marks) b) What are the capital adequacy requirements under BASEL III? (6 marks)

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