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What is the optimal course of action for a bank to comply with the updated Basel III regulations, considering that the Chief Risk Officer (CRO) of a major bank has instructed a team of risk managers to develop a strategy for implementing the changes to the guidelines finalized in December 2017? Additionally, how should the bank prepare, given the expectation that it will be classified as a global systemically important bank (G-SiB) by the implementation date?
A
Introduce an internally created model to determine the bank's operational risk capital.
B
Assign different credit risk weights for residential mortgages based on each mortgage's loan-to-value ratio.
C
Apply the advanced internal rating-based approach for certain types of credit exposures, such as exposures to banks and large corporations.
D
Decrease the bank's target level of its countercyclical buffer and its Basel III Tier 1 leverage ratio.