What is the capital conservation buffer and what impact will it have on bank performance and risk?
Answer to relevant QuestionsProvide the general outline of existing RBC requirements. Is there a difference between default risk, interest rate risk, and liquidity risk? Regulators put great pressure on banks to reduce their common dividend payments when asset problems appear. Discuss the costs and benefits of cutting dividends. Discuss whether each of the following types of loans can be easily securitized. Explain why or why not. a. Residential mortgages b. Small business loans c. Pools of credit card loans d. Pools of home equity loans e. ...Describe what a ‘qualified mortgage’ is and explain the elements of the ability to repay rule. Suppose that you generate a cash based income statement and determine that CFO equals 75 percent of cash dividends paid and payments on current maturities of long term debt. What is the significance of this in terms of the ...
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