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RISK REGULATION IN BANKING INDUSTRY
What is the primary objective of risk regulation in the banking industry?
The primary objective is to ensure financial stability and protect depositors by mandating that banks maintain adequate capital buffers and sound risk management practices.
What is the minimum total Capital Adequacy Ratio (CAR) required under Basel III?
Minimum total CAR is 8% of risk-weighted assets.
Which international body sets global standards for bank capital adequacy and risk regulation?
The Basel Committee on Banking Supervision (BCBS), headquartered at the Bank for International Settlements (BIS) in Basel, Switzerland, sets global standards for bank capital adequacy and risk regulation.
What is the Additional Tier 1 (AT1) capital and which instruments qualify?
AT1 includes perpetual bonds and non-cumulative preference shares.
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