Financial Risk Manager Part 2
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Upon reviewing the results of the capital analysis report and considering other relevant factors pertaining to Bank LGX's capital planning, which of the following conclusions is correct?
A
The capital conservation buffer can be met by an increase in Tier 2 capital.
B
If the exposure on derivative asset positions decreases, holding other factors constant, the total capital ratio would decrease.
C
An increase in the CVA due to the bank's asset counterparty positions would tend to raise the bank's risk-weighted assets.
D
if the bank raises additional CET 1 capital and invests the same amount in gold, Bank LGX's net stable funding ratio will not change.