CFA考试资料答案R16 Analysis of Financial Institutions - Answers.pdf

Question #1 of 19 Question ID: 1209106 Basel III regulation that aims to prevent banks from assuming so much leverage that they are unable to withstand loan losses is most correctly described as the: A) minimum capital requirement. B) stable funding requirement. C) minimum liquidity requirement. Explanation 7 The minimum capital requirement species a ratio of assets to risk-weighted assets to ensure the 3 2 1 balance sheet is robust enough to cope with loan losses. Stable funding requirements specify the q amount of stable funding relative to liquidity needs over a one-year horizon. The minimum liquidity i requirement species a minimum level of liquidity to cover a partial loss of funding sources or outow s due to o balance sheet commitments. u m : (Study Session 5, Module 16.1, LOS 16.b) t a