Question
Which of the following statements is NOT correct? A. The conservation buffer is always 2.5% of RWA, regardless of the state of the economy and
Which of the following statements is NOT correct?
A. | The conservation buffer is always 2.5% of RWA, regardless of the state of the economy and the country. | |
B. | The countercyclical buffer can be different in different countries. | |
C. | The punishment for breaching the buffers is not as severe as the punishment for breaching the minimum capital requirements. | |
D. | Regulatory capital that is used for minimum requirements can be used for the conservation and the countercyclical buffers. | |
E. | A bank cannot meet the countercyclical buffer if the conservation buffer has not been met. |
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