Which of the following is true of the set of reforms to banking regulation known informally as "Basel 4"?

They increase the extent to which banks can reduce their risk-weighted asset using internal risk models and this will reduce their reported regulatory capital ratios.

They limit the extent to which banks can reduce their risk-weighted asset using internal risk models and this will raise their reported regulatory capital ratios.

They increase the extent to which banks can reduce their risk-weighted asset using internal risk models and this will increase their reported regulatory capital ratios.

They limit the extent to which banks can reduce their risk-weighted asset using internal risk models and this will reduce their reported regulatory capital ratios.