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Which of the following is not correct about Basel 2 capital requirement? Group of answer choices It came out to address the regulatory arbitrage which
Which of the following is not correct about Basel capital requirement? Group of answer choices It came out to address the regulatory arbitrage which led to increased risk taking It links capital requirements for large, internationally active banks more closely to actual risk of three types: market risk, credit risk, and operational risk. It also allows sophisticated banks to pursue an internal ratingsbased approach that permits these banks to use their own models of credit risk. It applies to all but the largest banks in the United States.
Which of the following is not correct about Basel capital requirement?
Group of answer choices
It came out to address the regulatory arbitrage which led to increased risk taking
It links capital requirements for large, internationally active banks more closely to actual risk of three types: market risk, credit risk, and operational risk.
It also allows sophisticated banks to pursue an internal ratingsbased approach that permits these banks to use their own models of credit risk.
It applies to all but the largest banks in the United States.
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