Multiple Choice
The market risk capital charge is included in capital regulations as regulators recognise that changes in market value can impact on a FI's insolvency risk.
A) Market risk takes into account general market risk, specific market risk and operational risk.
B) FIs with APRA approval can use a combination approach with all risk categories and across all regions.
C) APRA can increase or decrease capital requirements from the internal model if it considers that it doesn't reflect fully the FI's market risk profile.
D) All of the listed options are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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