Why Do Regulators Prefer Higher Capital Requirements

question 34

Multiple Choice

Why do regulators prefer higher capital requirements?

• A) It justifies the existence of regulatory agencies.
• B) It better protects the deposit insurance fund.
• C) It enhances bank asset quality.
• D) It decreases bank profitability.
• E) It increases bank leverage.

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Definitions:

Client Satisfaction

The measure of how products or services supplied by a company meet or surpass customer expectations.

Informal Feedback

The casual and spontaneous comments about performance, often given in day-to-day interactions, not part of a structured evaluation.

Delphi Technique

The Delphi Technique is a structured communication method originally developed as a systematic, interactive forecasting method which relies on a panel of experts.

Employee Morale

The overall outlook, attitude, satisfaction, and confidence that employees feel at work.