Question
Which of the following statements is CORRECT? A. Regulatory capital that is used for meeting the minimum requirements cannot be used for the conservation and
Which of the following statements is CORRECT?
A. | Regulatory capital that is used for meeting the minimum requirements cannot be used for the conservation and the countercyclical buffers. | |
B. | The countercyclical buffer is always 2.5% of RWA, regardless of the state of the economy and the country. | |
C. | The punishment for breaching the buffers is more severe than the punishment for breaching the minimum capital requirements. | |
D. | The conservation buffer requirement can be different accross countries. | |
E. | A bank can decide to meet the buffers before it has met the minimum requirements. |
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