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Under Basel I, banks do not like lending to highly creditworthy companies and prefer to help them issue debt securities. Why is this? Explain why
- Under Basel I, banks do not like lending to highly creditworthy companies and prefer to help them issue debt securities. Why is this?
- Explain why the final stage in the Basel II calculations for credit risk (IRB), market risk and operational risk is to multiply by 12.5?
- Explain how the incremental risk charge is calculated. Why was it introduced by the Basel Committee?
- How are credit trades handled under the FRTB?
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