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Why Have Regulators in Recent Years Increasingly Focused Attention on Assessments

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Essay

Why have regulators in recent years increasingly focused attention on assessments of banks' internal risk management? Why might a bank's current balance sheet not provide sufficient information on a bank's risk position?


Definitions:

Short-term Memory Span

The ability to retain a limited amount of data in an immediately accessible form for a brief duration.

Long-term Potentiation

A lasting increase in signal transmission between two neurons, thought to be a biological mechanism behind learning and memory.

Synaptic Transmission

The process of transferring neurotransmitters from one neuron to another across a synapse to continue or modify a neural signal.

Information Processing

The series of actions or steps taken in order to store, retrieve, and make sense of information.

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