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Since the global financial crisis, regulatory authorities, financial institutions and financial markets globally have increasingly focused on risk and resilience in the banking sector. One

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Since the global financial crisis, regulatory authorities, financial institutions and financial markets globally have increasingly focused on risk and resilience in the banking sector. One of the main changes in the international framework was to increase the amount and quality of capital. a. What are the rationales behind these stricter capital requirements? (3.5 marks) b. Discuss the implications of the capital requirements on financial institutions taking into account the current coronavirus pandemic. (4 marks)

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