The Risk-Based Capital Requirements Have Received Several Types of Criticism

question 40

Short Answer

The risk-based capital requirements have received several types of criticism.Please match the criticism headings below (as stated in the text)with the appropriate criticism explanations in questions 20-122 to 20-130.
-20-126 The benefits may not support the significant cost of developing and implementing new risk management systems.
A)Competition
B)DI specialness
C)Excessive complexity
D)Impact on capital requirements
E)Other risks
F)Pillar 2 may ask too much of regulators
G)Portfolio aspects
H)Risk weights
I)Risk weights based on external credit rating agencies

• A)Competition
• B)DI specialness
• C)Excessive complexity
• D)Impact on capital requirements
• E)Other risks
• F)Pillar 2 may ask too much of regulators
• G)Portfolio aspects
• H)Risk weights
• I)Risk weights based on external credit rating agencies

---

Definitions:

Analytical Tool

A software or method used to analyze data or information, often to identify patterns, trends, or insights for decision-making.

Retail Outlets

Physical locations where consumers can purchase goods or services directly from a retailer.

Product Line

A group of related products manufactured or sold by a business.

Quadrant A

In strategic management models, this term typically refers to the top-left quadrant, often associated with high growth opportunities and strong competitive positions in market analysis.