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

question 94

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.
-20-130 Regulators may not be trained or willing to make the necessary decisions that may rely heavily on judgment.
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

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Definitions:

Managing Conflict

The process of identifying and addressing differences that have the potential to negatively impact individuals or organizations, with the aim of reaching an effective resolution.

Integrating Device

A tool or mechanism used in management to coordinate activities and decisions across different parts of an organization to achieve coherence and unity of effort.

Conflicts

Situations where opposing ideas, interests, or forces create tension or disagreement, requiring resolution for progress.

Cross-Functional Teams

Groups consisting of members from different departments or functional areas within an organization, working together on a common project.