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QUESTION 14 to A bank had bought corporate bonds with the idea of benefiting from high coupon payments. However, the bank realizes that it is
QUESTION 14 to A bank had bought corporate bonds with the idea of benefiting from high coupon payments. However, the bank realizes that it is short of ESF and is now contemplating selling them in the near future. The bank will reclassify the government bonds from A. trading securities; investment securities B. investment securities; available-for-sale securities trading securities; available-for-sale securities D available-for-sale securities; investment securities E. investment securities; trading securities QUESTION 15 A bank has CET1 equal to 8% of its RWA and no Additional Tier 1 capital and no Tier 2 capital. Basel III is implemented with a conservation buffer. The regulator of the country in which the bank operates imposes a countercyclical buffer of 2%. Based on the information above, which of the following statements is CORRECT? A. The bank has met its minimum requirements and conservation buffer but not the countercyclical buffer. B. The bank has met all the requirements. C. The bank has met its minimum requirements but not the conservation buffer and not the countercyclical buffer. D. The bank has not met any of the requirements. E. There is not enough information to conclude
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